by Jonathan Stempel
Federal prosecutors on Friday requested 21 years in prison for American businessman Bill Hwang, founder of Archegos Capital Management.
Archegos, which had $36 billion in assets, collapsed in 2021, when it defaulted on margin calls, shaking Wall Street with massive stake sales, including in ViacomCBS.
This bankruptcy led to billions of dollars in losses for banks like Credit Suisse and Nomura Holdings.
Manhattan federal court will rule on Bill Hwang’s fate on November 20. He was found guilty in July of ten counts.
New York prosecutors accused Bill Hwang of lying to banks in order to increase his firm’s credit lines, before using derivatives traded with them to manipulate the underlying stocks and increase its profits.
The businessman’s lawyers argued that he should not be sentenced to prison.
(French version Camille Raynaud)
Business
