SEC Says It’s Been Monitoring Archegos Fallout Since Last Week

The U.S. Securities and Exchange Commission has been monitoring the forced liquidation of more than $20 billion in holdings linked to Bill Hwang’s investment firm that has roiled stocks from Baidu Inc. to ViacomCBS Inc.

“We have been monitoring the situation and communicating with market participants since last week,” an SEC spokesperson said in emailed statement.

Hwang’s New York-based Archegos Capital Management is at the center of a margin call that led to the forced liquidation on Friday, according to people familiar with the transactions. Among the companies sold were GSX Techedu Inc. and Discovery Inc.

Banks including Credit Suisse Group AG and Nomura Holdings Inc. are warning investors that they may face “significant” losses after an unnamed U.S. hedge fund client defaulted on margin calls. Goldman Sachs Group Inc. is telling shareholders and clients that any impact from Archegos is likely to be immaterial, a person familiar with the matter said.

White House Press Secretary Jen Psaki told reporters on Monday that the Biden administration is also monitoring the situation. She referred questions to the SEC.

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