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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