(Reuters) – The U.S. Securities and Exchange Commission (SEC) has started a preliminary investigation into Bill Hwang following the collapse of New York-based Archegos Capital Management, Bloomberg News reported on Wednesday, citing a person familiar with the matter.
The probe is a routine procedure, which the SEC launches after a major market blowup, and may not lead to any allegations of wrongdoing, according to the report.
A spokesperson from the SEC declined to comment. Archegos could not be immediately reached for comment
Archegos Capital Management, a $10 billion single-family office run by former Tiger Asia manager Hwang, defaulted on margin calls by its banks, triggering a turmoil on Wall Street.
Archegos’ soured leveraged equity bets have left big banks that financed its trades nursing at least $6 billion in losses, while drawing scrutiny from watchdogs.
U.S. and British financial regulators have been in discussions with market players including broker-dealers as they try to determine the fallout from Archegos’ default, a source briefed on the talks told Reuters on Tuesday.
(Reporting by Michelle Price in Washington DC and Tiyashi Datta in Bengaluru; Editing by Anil D’Silva)
