Reported 5 months ago
In the fraud case against Archegos Capital Management's founder Bill Hwang and CFO Patrick Halligan, a witness testified that Morgan Stanley reacted "angrily" when Archegos fell, while Credit Suisse took a softer approach. The witness, Scott Becker, detailed how Archegos tried to raise cash but ultimately failed, resulting in the firm being wiped out by margin calls. Becker also revealed that Archegos provided false information to banks to delay margin calls before its collapse, with Morgan Stanley being informed they had "zero" excess cash. Becker's cooperation with the government as a witness is seen as crucial in the trial.
Source: YAHOO