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Credit Suisse Bid for Archegos Fix Ends With Banks Brawling (2)

March 30, 2021, 4:59 PM

Alarms were blaring inside Wall Street’s corridors of power in the middle of last week, as executives realized they might be facing the biggest hedge fund blowup since Long-Term Capital Management in the 1990s.

Global investment banks, gathering in a hastily arranged call, needed a swift truce to deal with Bill Hwang’s Archegos Capital Management if they were to head off billions of dollars in losses for banks and a potential chain reaction across markets. Yet by Friday, it was everyone for themselves.

The forced liquidation that sent bellwether stocks tumbling last week and continues to send shock waves ...