The founder of US investment firm Archegos, Bill Hwang, was found guilty Wednesday of fraud and market manipulation in a case focused on the fund’s 2021 implosion that cost major banks billions of dollars.
A jury in New York convicted South Korean-born Hwang on 10 of the 11 charges he faced, according to US media. He could spend the rest of his life in prison.
Hwang’s family-owned hedge fund had taken huge bets on a few stocks with money borrowed from banks, and when one of those bets soured, the fund was unable to meet “margin calls” to cover the losses.
The subsequent collapse of the fund sent shockwaves through the markets and caused $10 billion in losses for Credit Suisse, Nomura, Morgan Stanley and other large financial institutions.
Credit Suisse …