The US Department of Justice's (DOJ) Antitrust Division has reopened an investigation into how banks managed the collapse of Archegos Capital in 2021, focusing on whether their actions involved illegal collusion, as reported by Bloomberg.
Prosecutors are scrutinizing emergency talks among banks that aimed to unwind $150 billion in Archegos-linked positions. While some banks, including Credit Suisse, UBS, and Nomura, coordinated liquidation efforts, others chose not to participate. The managed liquidation strategy resulted in significant losses, with Credit Suisse alone losing $5.5 billion before its eventual collapse.
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