The Rise and Fall of Bill Hwang: The Untold Story

📈Bill Hwang's incredible success in the stock market, riding the wave of tech stocks and using leverage to amplify his gains.

💥The collapse of Archegos Capital Management, resulting in billions of dollars in losses for Hwang and the banks that had lent him money.

🕵️The use of swaps and other financial derivatives by Hwang to remain invisible in securities filings, adding to the complexity of the situation.

💸The financial impact of the Archegos collapse, including the losses suffered by banks like Credit Suisse and Nomura.

📝The calls for increased regulation and transparency in the prime brokerage business to prevent similar incidents in the future.

Who is Bill Hwang?

—Bill Hwang is a former hedge fund manager who founded Archegos Capital Management. He gained recognition for his success in the stock market and the rapid rise of his firm's assets.

What led to the collapse of Archegos Capital Management?

—The collapse was triggered by margin calls from banks that had lent money to Hwang. As the stocks in his portfolio declined, the banks demanded additional collateral, which Hwang was unable to provide, leading to the liquidation of his positions.

How much money was lost in the collapse of Archegos?

—In total, it is estimated that around $30 billion was lost in the collapse, including losses suffered by Hwang and the banks involved in the margin calls.

What are swaps?

—Swaps are a type of derivative that allows investors to remain anonymous in securities filings, with the name of the dealing firm appearing instead. This financial instrument was used by Hwang to keep his large positions hidden.

What are the implications of the Archegos collapse?

—The collapse has raised concerns about the stability and transparency of the prime brokerage business. There have been calls for increased regulation and disclosure requirements to prevent similar incidents in the future.

00:00Introduction to the rise and fall of Bill Hwang and his firm Archegos Capital Management.

03:30Bill Hwang's background and journey from a modest upbringing to becoming a successful hedge fund manager.

09:30The events leading to the collapse of Archegos, including the stock sale by ViacomCBS and margin calls from banks.

12:30The financial impact of the collapse, including losses suffered by Hwang and the banks involved, and the implications for the financial industry.

14:30Calls for increased regulation and transparency in the prime brokerage business to prevent similar incidents.