Justice Department Opens Probe Into Archegos Blowup
- Prosecutors seek information from banks that dealt with firm
- The inquiry adds to regulatory scrutiny that started in March
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The Department of Justice is investigating the market-rattling meltdown of Bill Hwang’s Archegos Capital Management in March, a debacle that left big banks in Europe, Asia and the U.S. nursing more than $10 billion in losses.
Federal prosecutors in Manhattan sent requests for information to at least some of the banks that dealt with the firm, according to people with knowledge of the matter, who asked not to be identified discussing the confidential probe. It’s unclear what potential violations or entities authorities are examining.