UK markets closed
  • NIKKEI 225

    29,100.38
    -584.99 (-1.97%)
     
  • HANG SENG

    29,135.73
    +29.58 (+0.10%)
     
  • CRUDE OIL

    62.61
    -0.77 (-1.21%)
     
  • GOLD FUTURES

    1,778.20
    +7.60 (+0.43%)
     
  • DOW

    33,820.51
    -257.12 (-0.75%)
     
  • BTC-GBP

    40,620.18
    +487.07 (+1.21%)
     
  • CMC Crypto 200

    1,293.44
    +59.02 (+4.78%)
     
  • ^IXIC

    13,786.27
    -128.50 (-0.92%)
     
  • ^FTAS

    3,920.05
    -76.60 (-1.92%)
     

Morgan Stanley dumped $5 billion in Archegos stock night before fire sale -CNBC

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
FILE PHOTO: People take photos by the Morgan Stanley building in Times Square in New York
  • Oops!
    Something went wrong.
    Please try again later.

(Reuters) -Morgan Stanley sold about $5 billion of Archegos' stocks the night before the fire sale hit rivals, CNBC reported on Tuesday, citing people with knowledge of the trades.

Morgan Stanley had the consent of Archegos, run by former Tiger Management analyst Bill Hwang, to shop around its stock late Thursday, according to the report.

The bank offered the shares at a discount, telling the hedge funds that they were part of a margin call that could prevent the collapse of an unnamed client, CNBC reported.

Morgan Stanley declined to comment.

Earlier on Tuesday, Credit Suisse said it would take a hit of 4.4 billion Swiss franc ($4.72 billion) from dealings with Archegos Capital Management, prompting it to overhaul the leadership of its investment bank and risk divisions.

Other banks with exposure to Archegos, including Goldman Sachs Group Inc and Deutsche Bank AG, have unwound their trades, 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)