4 ms·
Amazing report. Some notes 1. Report is written by an internal committee of Credit Suisse 2. Archegos started as Tiger Asia, got caught doing insider trading,
by kumarvvr 5y ago
Amazing report. Some notes
1. Report is written by an internal committee of Credit Suisse
2. Archegos started as Tiger Asia, got caught doing insider trading, settled with US SEC in 2012. Then re-branded itself as Archegos, operating from Hong Kong focussing on Asian securities. Hong Kong later banned it from operating for four years. This lead to Archegos trading in US, with Asian ADRs (basically Asian securities, converted to US securities equivalent assets)
3. CS basically ignored all the risk factors associated with Tiger Asia / Archegos and continued providing them services.
Looks like they backed a bad player with bad reputation that was sometimes profitable and it came back to bite its behind.
- JKCalhoun 5y agoRemarkable. I read things like this and can't help but come away thinking either: 1) Big banks are run by idiots or, 2) Big banks are greedy and it blinds them to the obvious or, 3) Big banks cover their asses after the fact with fanciful tales of miscommunication, we were deceived!, etc.