NEW YORK: New details revealing how Archegos Capital Management founder Bill Hwang hid his fund’s extreme exposure from its lenders raise fresh questions about the risk management policies at these global banks, former regulators and risk experts say.
Hwang and Archegos chief financial officer Patrick Halligan were arrested Wednesday on charges they lied to banks to increase Archegos’ credit lines and used the money to ramp up their exposure to a handful of stocks, which they also manipulated, according to a Justice Department complaint.