Credit Suisse’s Lengthy Liquidation Process of Archegos Capital Management
Credit Suisse Group AG took almost a month to unwind its massive $25 billion position in Archegos Capital Management, showcasing the intricacy of liquidating such a substantial stake after the collapse of Bill Hwang’s family office over three years ago. The process was a challenging one, as the Swiss bank navigated through the complexities of minimizing market impact while offloading its position.
The Testimony of Josh Lukeman and Credit Suisse’s Unwinding Strategy
Josh Lukeman, a former equity finance head at Credit Suisse, was a key witness in Hwang’s fraud case, shedding light on the internal workings of the bank during the Archegos debacle. Lukeman detailed the cautious approach Credit Suisse took in liquidating its position, emphasizing the bank’s efforts to avoid causing significant market disruptions. Despite the meticulous planning, Credit Suisse incurred a substantial $5.5 billion loss, contributing to its own collapse.
The Defense’s ‘Black Swan’ Argument and Potential Witness Testimonies
The defense team for Hwang has presented the rare “black swan” event as a factor in Archegos’ downfall, citing market volatility affecting its major holdings. As the trial unfolds, potential witnesses from Credit Suisse, including former prime risk services head Parshu Shah, could provide further insights into the bank’s missteps. The testimonies of cooperating witnesses, such as former chief risk officer Scott Becker, have already been instrumental in uncovering the truth behind the Archegos saga.
