15. Archegos Capital Meltdown (2021)
In March 2021, Archegos Capital Management, led by Bill Hwang, collapsed after failing to meet margin calls on highly leveraged positions in media and technology stocks (cbsnews.com). The firm’s use of total return swaps concealed its substantial exposure, leading to forced liquidations that caused significant losses for major banks: Credit Suisse reported a $5.5 billion loss, Nomura Holdings faced a $2.85 billion loss, and UBS Group AG reported a $774 million loss. Hwang and former CFO Patrick Halligan were arrested and charged with securities fraud and racketeering conspiracy. In January 2025, Halligan was sentenced to eight years in prison for his role in the collapse (reuters.com).
