Archegos-Linked Banks Get Pressed for Answers by Sherrod Brown

Senate Banking Committee Chairman Sherrod Brown asked banks involved with Bill Hwang’s Archegos Capital Management to explain their role in the firm’s implosion.

Credit Suisse Securities LLC, Nomura Holding America Inc., Goldman Sachs Group Inc. and Morgan Stanley should respond with “answers about the margin call and market activity connected to Archegos,” according to a letter to the firms released Thursday by the Ohio Democrat.

Sherrod Brown

Photographer: Zach Gibson/Bloomberg

Brown compared the forced sales by Hwang’s family office to Long-Term Capital Management and other episodes that destabilized markets and said they show the threat to investors “when excessive leverage is ...