Wall Street on Tuesday saw muted action but investors were still buzzing about the highly leveraged wrongway bet reportedly employed by Bill Hwang’s Archegos Capital Management, which may have saddled many banks with multibillion-dollar losses.
Using derivatives, Archegos, pronounced “Ar-chee-gos” by the company, maintained positions in stocks including ViacomCBS Inc.
and GSX Techedu
and was hit by margin calls as the direction of those highfliers turned against the family office.
The downturn in the stocks, with shares ViacomCBS and Discovery registering their worst downturns on record, forced the banks