Photographer: Michael Nagle / Bloomberg
Photographer: Michael Nagle / Bloomberg
Morgan Stanley sold $ 5 billion worth of shares held by Archegos Capital Management the day before a flood of blockchain transactions sent shockwaves through the capital markets.
The sale of the stock basket on March 25 was completed with a fixed discount, according to a person with knowledge of the matter, who asked not to be identified discussing private transactions.
Wall Street Bank sold shares held by Bill Hwang’s family office in about 10 companies after the market closed, mainly to hedge funds, the person said. CNBC reported earlier Tuesday on the size of the sale of shares.
Morgan Stanley’s early exit bid helped the company emerge largely unscathed from a fund revocation that caused billions of euros in losses to other banks. Credit Suisse Group AG announced on Tuesday a $ 4.7 billion discount on its exposure to Archegos, and Nomura Holdings Inc. said it could have a blow of up to $ 2 billion.
Morgan Stanley was one of the first supporters of the family office, despite the legal stain on Hwang. He was accused of insider trading by the authorities and in 2012 pleaded guilty to bank fraud on behalf of his hedging fund, Tiger Asia Management.
A Morgan Stanley spokesman declined to comment.
Read more: Credit Switzerland Bidding for Archegos Fix ends with fights in battle
– With the assistance of Sridhar Natarajan