SEC opens investigation into Bill Hwang after Archegos meltdown: Bloomberg News

March 31, 2021 3:24 PM EDT

FILE PHOTO: A person walks past 888 7th Ave, a building that reportedly houses Archegos Capital, amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., March 29, 2021. REUTERS/Carlo Allegri/File Photo

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(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)

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