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Morgan Stanley dumped $5 billion in Archegos stock night before fire sale: CNBC

Stock MarketsApr 06, 2021 05:20PM ET
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© Reuters. FILE PHOTO: People take photos by the Morgan Stanley building in Times Square in New York

(Reuters) - Morgan Stanley (NYSE:MS) sold about $5 billion of Archegos' stocks the night before the fire sale hit rivals, CNBC reported on Tuesday, citing people with knowledge of the trades.

Morgan Stanley had the consent of Archegos, run by former Tiger Management analyst Bill Hwang, to shop around its stock late Thursday, according to the report.

The bank offered the shares at a discount, telling the hedge funds that they were part of a margin call that could prevent the collapse of an unnamed client, CNBC reported.

Morgan Stanley declined to comment.

Earlier on Tuesday, Credit Suisse (SIX:CSGN) said it would take a hit of 4.4 billion Swiss franc ($4.72 billion) from dealings with Archegos Capital Management, prompting it to overhaul the leadership of its investment bank and risk divisions.

Other banks with exposure to Archegos, including Goldman Sachs Group Inc (NYSE:GS) and Deutsche Bank AG (NYSE:DB), have unwound their trades, Reuters reported on Monday, citing sources with direct knowledge of the transactions.

($1 = 0.9313 Swiss francs)

Morgan Stanley dumped $5 billion in Archegos stock night before fire sale: CNBC
 

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Comments (6)
Larry Deangelis
Larry Deangelis Apr 06, 2021 11:30PM ET
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Cheater's proof! I'm sure Goldman did the same.
Hung Nguyen
Hung Nguyen Apr 06, 2021 9:44PM ET
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Im jsut wow
Tyrone Jackson
Tyrone Jackson Apr 06, 2021 7:23PM ET
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They are all in on the scam. Look at some of ML ‘s call’s pertaining to these stocks . Lol They had buy ratings on them ALL. Will Bill go to jail? Lol no way, did the brokers all make money? Yes. So who took the lose? Retail stock buyers Where was the SEC??? Asleep at the wheel
Roger Miller
Roger Miller Apr 06, 2021 5:34PM ET
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Donated too much for politicians to care.
Lisa Klenzak
Lisa Klenzak Apr 06, 2021 5:12PM ET
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so...insider trading
Don Getty
Don Getty Apr 06, 2021 5:12PM ET
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no, but a very good ouiji board
Jamile XR
Bull65 Apr 06, 2021 4:52PM ET
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As usual, someone we'll informed, did fall standing...
 
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