Credit Suisse Bid for Tidy Archegos Fix Ends With Banks Brawling
- Prime brokerages held call with Archegos for orderly disposals
- But an agreement was elusive. Then came the finger-pointing.
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Alarms were blaring inside Wall Street’s corridors of power in the middle of last week, as executives realized they might be facing the biggest hedge fund blowup since Long-Term Capital Management in the 1990s.
Global investment banks, gathering in a hastily arranged call, needed a swift truce to deal with Bill Hwang’s Archegos Capital Management if they were to head off billions of dollars in losses for banks and a potential chain reaction across markets. Yet by Friday, it was everyone for themselves.