Securities regulators in the US and Europe are examining discussions between six banks linked to Archegos Capital Management to determine whether any acted inappropriately during Friday’s fire sale. Finra, Wall Street’s self-regulatory body, has also contacted the banks at the centre of the Archegos trading debacle. As Archegos’ losses increased last week, several of the prime brokers were keen to avoid a fire sale, fearing that would depress the value of the securities they held on behalf of Archegos. Instead of an orderly sale, other banks tried to dump their Archegos holdings too. The sharp share price falls that followed caused big losses for Credit Suisse and Nomura, in particular.

Source: The Irish Times March 30, 2021 16:41 UTC