'You have to wonder who else is out there with one of these invisible fortunes. The psychology of all that leverage with no risk management, it’s almost nihilism.'
- Novogratz
'..employed financial derivatives to amass big stakes in companies without ever having to disclose them. Another part is that global banks embraced him as a lucrative customer, despite a record of insider trading and attempted market manipulation that drove him out of the hedge fund business a decade ago.''Late Monday in New York, Archegos broke days of silence on the episode.
“This is a challenging time for the family office of Archegos Capital Management, our partners and employees,” Karen Kessler, a spokesperson for the firm, said in an emailed statement. “All plans are being discussed as Mr. Hwang and the team determine the best path forward.”
The cascade of trading losses has reverberated from New York to Zurich to Tokyo and beyond, and leaves myriad unanswered questions, including the big one: How could someone take such big risks, facilitated by so many banks, under the noses of regulators the world over?
One part of the answer is that Hwang set up as a family office with limited oversight and then employed financial derivatives to amass big stakes in companies without ever having to disclose them. Another part is that global banks embraced him as a lucrative customer, despite a record of insider trading and attempted market manipulation that drove him out of the hedge fund business a decade ago.
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“You have to wonder who else is out there with one of these invisible fortunes,” said Novogratz. “The psychology of all that leverage with no risk management, it’s almost nihilism.” '
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One of World’s Greatest Hidden Fortunes Is Wiped Out in Days, March 29, 2021
Context'..Things turn really crazy at the end of cycles. Monetary Disorder, Manias and Market Dysfunction..'(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'