How to Lose $20 Billion in Two Days
Bloomberg Originals・2 minutes read
Bill Hwang's rise to wealth through Archegos Capital Management ended in a $30 billion collapse due to ViacomCBS's stock decline, prompting calls for more transparency and oversight in family offices to prevent future disasters. His faith and leveraging of borrowed money played a significant role in his fearless investment approach, ultimately leading to the liquidation of his entire portfolio and significant losses for banks like Credit Suisse and Nomura.
Insights
- Bill Hwang's rise from humble beginnings in South Korea to a Wall Street titan through Tiger Asia and later Archegos Capital Management showcases the journey of an individual who achieved remarkable success but faced a dramatic downfall due to risky investment strategies and reliance on borrowed funds.
- The Archegos debacle, resulting in $30 billion in losses and impacting major banks like Credit Suisse and Nomura, underscores the dangers of leveraging borrowed money in financial markets and the necessity for enhanced transparency and disclosure regulations for family offices to prevent future catastrophic events, prompting regulatory bodies to reevaluate prime brokerage practices to mitigate systemic risks.
Get key ideas from YouTube videos. It’s free
Recent questions
Who is Bill Hwang?
Bill Hwang is a former unknown figure turned wealthy investor.
What caused the downfall of Archegos?
ViacomCBS's stock decline led to margin calls and liquidation.
How did Bill Hwang's faith influence his investments?
Bill Hwang believed he was serving God's purpose through investments.
What impact did the Archegos collapse have on banks?
Banks like Credit Suisse and Nomura faced significant losses.
Why did regulators scrutinize the prime brokerage business post-Archegos?
Regulators emphasized the need for increased transparency and disclosure.
Related videos
ColdFusion
When Risk Taking Goes Too Far - The Archegos Collapse
Basant Maheshwari - The Equity Desk
₹4 Crore Se Zero ek hi Minute Mei !
ColdFusion
The FTX Disaster is Deeper Than you Think
The Real News Network
How private equity conquered America | The Chris Hedges Report
CNBC
The Collapse Of FTX: Insiders Tell All | CNBC Documentary