Morgan Stanley dumped $5 bln in Archegos stock night before fire sale -CNBC
Morgan Stanley sold about $5 billion of Archegos’ stocks the night before the fire sale hit rivals, CNBC reported on Tuesday, citing people with knowledge of the trades. Morgan Stanley had the consent of Archegos, run by former Tiger Management analyst Bill Hwang, to shop around its stock late Thursday, according to the report.
The bank offered the shares at a discount, telling the hedge funds that they were part of a margin call that could prevent the collapse of an unnamed client, CNBC reported. Morgan Stanley did not immediately respond to a Reuters request for comment. Earlier on Tuesday, Credit Suisse said it would take a hit of 4.4 billion Swiss franc ($4.72 billion) from dealings with Archegos Capital Management, prompting it to overhaul the leadership of its investment bank and risk divisions.
Other banks with exposure to Archegos, including Goldman Sachs Group Inc and Deutsche Bank AG, have unwound their trades, Reuters reported on Monday, citing sources with direct knowledge of the transactions.
wait until the next hedge fund blow-up as now everyone is on notice about this habbening so it won’t be so easy to dump equity’s-even in a dark-pool transaction and with a big discount-as in these cases.
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