CS Credit Suisse Group

By Margot Patrick, Emily Glazer and Juliet Chung 

Federal prosecutors in New York have requested information about Archegos Capital Management from banks across Wall Street, according to people familiar with the matter.

Banks that lent to Archegos, including Credit Suisse Group AG, UBS Group AG, Goldman Sachs Group Inc. and Morgan Stanley, have been contacted for information, the people said.

It couldn't be determined Wednesday what the precise focus of the inquiry was. Law enforcement authorities often open investigations when market shocks are caused by a single or small group of traders.

Archegos, the family investment firm for former hedge-fund manager Bill Hwang, hasn't been contacted by the Manhattan U.S. attorney's office, according to a person familiar with the matter.

The firm's collapse in March triggered more than $10 billion in losses across Wall Street, in one of the biggest meltdowns since the financial crisis. After prices reversed on some of Archegos's biggest bets, the firm couldn't meet margin calls, causing banks to unwind Archegos's positions.

Bloomberg News earlier reported that federal prosecutors had asked banks for information about Archegos.

--Dave Michaels, Corinne Ramey and Ben Eisen contributed to this article.

Write to Margot Patrick at margot.patrick@wsj.com, Emily Glazer at emily.glazer@wsj.com and Juliet Chung at juliet.chung@wsj.com

(END) Dow Jones Newswires

May 26, 2021 20:42 ET (00:42 GMT)

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