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Most of the attention around the collapse of family office Archegos Capital Management has rightly fallen on poor Credit Suisse, which was both the biggest sucker and, not coincidentally, the biggest loser from the whole mishigas— aside, of course, from Bill Hwang, whose days aren’t getting any better, either. Whether it’s subpoenas and other ominous requests for information; or angry regulators and legislators; or unannounced guests; or long, dark nights of the soul, Credit Suisse has had its fill and thensome.

Of course, one can’t get investigated for allegedly conspiring with and ultimately getting screwed by one’s fellow banks to minimize losses without alleged co-conspirators. And now it is their turn to plow through some unpleasant paperwork.

The suit, which was filed in a New York federal court by Vipshop Holdings Ltd. investors, alleges that [Goldman Sachs and Morgan Stanley]sold several large blocks of shares in companies in which Archegos held positions after confidentially learning that Bill Hwang’s family office was likely to fail in meeting margin calls. The sales sent Vipshop shares into “a complete tailspin,” the investors say…. Goldman sold $6.6 billion worth of shares of Baidu Inc., Tencent Music Entertainment Group and Vipshop before the market opened in the U.S. on March 26, Bloomberg News reported earlier, citing an email to clients. That move was followed by the sale of $3.9 billion of shares in ViacomCBS Inc., Discovery Inc., Farfetch Ltd., iQiyi Inc. and GSX Techedu Inc., the email said.

Goldman, Morgan Stanley Sued Over Archegos-Tied Sales [Bloomberg]

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Photo: Getty Images.

What Credit Suisse Lacks In Money Lost On Archegos It Makes Up For In Ominous Requests For Information

The Justice Department and Prudential Regulation Authority have some questions.

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It Has Stopped Being A Good Thing To Be Friends With Morgan Stanley’s Block Trading Head

Calls from Pawan Passi have been succeeded by calls from federal prosecutors and Gary Gensler.


Prosecutors Pretty Sure You Can’t Lose Your Banks $10 Billion Legally

Which is bad news for Bill Hwang and the Archegos crew.

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On Second, Post-Probe Thoughts, Investor Thinks Morgan Stanley May Really Have Screwed It Over Here

With this new s**t that has come to light, Disruptive Technology has a whole new perspective on its block trade last year.

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Landlord Not Going To Let A Little Hedge Fund Meltdown Cost It $160,000

And the people who it cost $5.5 billion are gonna try to not repeat the experience.

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At Least Bill Hwang Saved Some Souls

Because that’s about all his former employees have left in absence of their deferred comp.