Bill Hwang and his Archegos caused disruptions for Nomura and Credit Suisse

 





Credit Suisse is regularly being hit by different stories resulting in losses for the bank. The dust hasn’t yet settled after the Greensill controversy, and right away there is another scandal. Nomura issued a statement, where they informed about the claim of $2 billion against a US unnamed client.

It didn’t take long for the speculators and experts to select their candidate - Archegos. As a result of that news, Nomura’s shares started to fall and dropped as much as 16% in a single day. Also, Credit Suisse’s shares started to tumble too.

It looks like a big disruption for the pair and potentially the market, but we’re still to find out if somebody will join Credit Suisse and Nomura.

Bill Hwang - the story

Hwang has never been a Wall Street star, as he was invested in other projects, outside the New York elite. He supported other initiatives - in California for example. Julian Robertson from the Tiger Empire called him “the best salesman” the company had. And after it shut down, Hwang started his own firm fueled by $25 million from Robertson himself.

Bill Hwang is an expert in the Asian Capital Markets. His successes and achievements were quite impressive, and he was also seeking to be perceived as a good human and philanthropist. And when everything seemed rosy for him, something had to happen.

First, Tiger Asia Partners under Hwang was fined 67.7 million yen by SESC in Japan (Securities and Exchange Surveillance Commission). Then, Hwang himself got a ban for 4 years from conducting trades in Hong Kong. The allegations? Using information ‘from the inside’ to trade bank stocks from China.

As you can see, Hwang is indeed an interesting person, but the recent controversy is yet another one undermining his image. To find out about how his company got involved with Nomura, and how exactly the case will influence foreign banks, visit Andy Samu’s Disruption Banking piece: https://disruptionbanking.com/2021/03/29/how-much-disruption-will-bill-hwangs-archegos-cause-nomura-and-credit-suisse/.

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