FILE PHOTO: People take pictures of the Morgan Stanley Building in Times Square in New York City, New York, the United States, Feb. 20, 2020. REUTERS / Brendan McDermid / File Photo
April 8, 2021
(Reuters) – Morgan Stanley sold approximately $ 5 billion in Archegos stock the night before the fire sale, CNBC reported Tuesday, citing people with knowledge of the trade.
Morgan Stanley had approval from Archegos, led by former Tiger Management analyst Bill Hwang, to buy into its shares late Thursday, according to the report.
The bank offered the shares at a discount, telling hedge funds that they were part of a margin call that could prevent the collapse of an undisclosed customer, CNBC reported.
Morgan Stanley declined to comment.
Earlier on Tuesday, Credit Suisse announced it would generate CHF 4.4 billion ($ 4.72 billion) in business with Archegos Capital Management, prompting it to overhaul its investment banking and risk divisions.
Other banks exposed to Archegos, including Goldman Sachs Group Inc and Deutsche Bank AG, have closed their dealings, Reuters reported on Monday, citing sources with direct knowledge of the transactions.
($ 1 = 0.9313 Swiss Francs)
(Reporting by Arundhati Sarkar in Bengaluru; editing by Ramakrishnan M. and Anil D’Silva)
This article originally appeared on www.oann.com