The US Department of Justice has revived a dormant investigation into how lenders unwound over $150 billion in bets placed by Archegos mere months after the agency scored a conviction against its founder for deceiving those same financial institutions, Bloomberg reported Tuesday, citing people familiar with the matter.
The DOJ is looking into whether there was collusion or a conspiracy to collude to control prices during March 2021 talks when banks floated proposals to coordinate an orderly liquidation of Archegos' portfolio, the people reportedly told Bloomberg.
Credit Suisse, Nomura Holdings (NMR) and UBS Group (UBS) reached a managed liquidation agreement to selloff parts of their exposure to Archegos. Goldman Sachs (GS), Morgan Stanley (MS) and Deutsche Bank (DB) considered such an arrangement before deciding against it, according to the report.
Nomura, UBS, Goldman Sachs, Morgan Stanley and Deutsche Bank did not immediately reply to requests for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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