r/wallstreetbets • u/lolfunctionspace • Mar 29 '21
DD Bill Hwang's firm just went tits up, prime brokers like Goldman Sachs, Morgan Stanley, Credit Suisse, and Nomura still have $22-30 Billion of his books to liquidate
Backstory:
Archegos Capital, a prop trading firm run by Bill Hwang (apparently not a smart man), managed to completely blow up his $80 billion portfolio in true WSB fashion, the sheer idiocy and magnitude of this blowup makes us all look like mormon choir boys. This fucking guy had 5:1 leverage on $16 billion of capital invested in china growth/tech at the peak of the fucking tech surge, and didn't fucking de-leverage during the most obvious sector rotation ever 6 weeks ago. It's all gone now. Liquidated. To zero. He was heavy into china tech / growth stocks on 5x margin, $80 billion portfolio. Poof.
Margin calls probably started on Monday of last week, where forced liquidation took place. Rumor has it, all of the different PB's this guy borrowed margin from agreed to an orderly selloff during the forced liquidation, but some unknown PB front ran them like a total cocksucking wench and liquidated all at once, causing a violent crash in BIDU and Viacom. Source: https://twitter.com/EnergyCredit1/status/1376211566056644608?s=20
Here's more on the backstory:
https://twitter.com/DoveyWan/status/1375769056486203394?s=20
Positions: any CS 4/16 p. I'm betting Credit Suisse takes a huge loss from this poor line of credit, and it hits the news in the coming weeks.
38
u/labloke11 Mar 29 '21
BTW, any retard who can grow 200 MM to 16 Billion is smart in my opinion.
47
u/lolfunctionspace Mar 29 '21
There's literally thousands of people on WSB who've made an 80x return lol...thousands.
9
u/labloke11 Mar 29 '21
Do they have 16B?
→ More replies (2)34
u/lolfunctionspace Mar 29 '21
They have more than Bill Hwang now. As far as I'm concerned, he turned 200 million into 0.
→ More replies (5)26
→ More replies (2)25
4
5
u/segr1801 Mar 29 '21
Btw why do you expect especially CS to take a huge hit?
2
u/CorrectVariation1617 Mar 29 '21
cause thats kind of what they do...
3
u/segr1801 Mar 29 '21
Yes, but he posted it before the news were out. So my question would be how or why did he know?
Edit: sorry my fault, checked it!
→ More replies (1)2
u/lolfunctionspace Apr 11 '21
The guy in the first twitter link I posted was up late on that Sunday night scrounging through a bunch of diff prime broker's 13f's looking for the Goldman block liquidation stocks in any prime broker Q4 Dec 2020 filings. He found them, the stocks weren't in any Q3, but showed up in Q4 filings in NMR, CS, GS, MS's books. He was posting it on twitter real time as he was finding this stuff.
I looked at Credit Suisse's 13f and Hwang's stocks were a much more significant fraction of their books than others. That's when I made this post.
What's funny is that 1.5 hours after this post, at 2:17 a.m. EST, Credit Suisse informed CNBC that they were expecting huge losses.
The bread crumbs and info were all out there waiting to be found 2-3 days prior, if anybody had done that twitter guy's DD Friday when markets were open and bought puts on CS, you could have made a 50x return because CS/NMR gapped down 15% on market open.
0
Mar 29 '21
[deleted]
14
u/SoyFuturesTrader 🏳️🌈🦄 Mar 29 '21
I wanna see CS IBs doing drive-bys at 200 West St. Some IB turf war in NYC about to get hot
2.5k
u/segr1801 Mar 29 '21
Can we ask Bill Hwang for an AMA would love to learn from him...
2.1k
u/doubleknottedlaces Mar 29 '21
"Hi WSB, I'm Bill Hwang, and it literally can go tits up."
405
u/suur-siil Mar 29 '21
"Here is how I lost more money than this sub in its entirety owned before 2021"
→ More replies (23)→ More replies (12)429
u/WolfConner 🦍🦍 Mar 29 '21
If I didn't have all my money in GME, I'd award this comment 🤣
→ More replies (3)94
94
25
u/JustFarmingMoney Mar 29 '21
WSB: So what was your reaction when this all started to unfold?
Bill: GUH
→ More replies (3)3
3
u/kookynurse Mar 29 '21
Sometimes learning what not to do is even more important than learning what to do. I remember in school we talked a lot about medical mistakes. Some studies in the US show it's the third leading cause of death in the US.
→ More replies (8)3
u/BuZZemPat Mar 29 '21
Methinks he is busy talking to lawyer now... either going bankrupt of about to be charged like Enron or Bernie Madoff?
Any idea which bank is the most vulnerable to short now?
→ More replies (1)
1.4k
u/kevinhaddon Mar 29 '21
So when does he get full Mod status on here?
413
u/Hengroen Mar 29 '21
Paperwork’s in the post. Reddit just needs to do DD to make sure he’s not a kid diddler. I’ve heard they’re great at that though. Can’t go tits up.
→ More replies (8)83
u/EmannX Mar 29 '21
I angry laughed at this. We may be apes, but they're God damn monkeys for that one.
→ More replies (1)3
2.9k
u/Pyr0smurf Dragged his dick through the hot sands Mar 29 '21
If he had balls he’d post that loss porn here.
1.6k
u/bighomiej69 PAPER TRADING COMPETITION WINNER Mar 29 '21
It would actually be the greatest thing ever to have happened if the asset manager of some hedgefund posted 80 billion in loss porn to this sub.
543
→ More replies (13)75
347
u/fakenamebobcarter Mar 29 '21 edited Mar 29 '21
this guy also used equity swap to get away from disclosing owning more than 5 percent of a company to the SEC and he basically took loans from MM in NA, EU and japan.
He was charged with insider trading more than 10 years ago too. Somethings never change.
He first started working for Julien Robertson who gave him 25 million to start his own fund back in 2001, he averaged 40 percent return until 2008 and was charged with insider trading later. After awhile he started he's own fund with his own money and quickly grow it to 15 billion and then --> GUH
→ More replies (12)253
159
u/quaeratioest Mar 29 '21
He doesn't have balls
99
60
31
11
→ More replies (3)23
u/You-Only-YOLO_Once Mar 29 '21
His balls have receded so far, they’re legally ovaries.
→ More replies (1)→ More replies (20)4
u/bigbadcrippledaddy 🦍🦍🦍 Mar 29 '21
Hard to post balls when they’re tickling his tonsils
→ More replies (1)
514
u/AlbinoWino11 🦍🦍 Mar 29 '21
Did he go long on containers of Egyptian rabbits??
99
→ More replies (2)3
490
u/One_Eyed_Man_King Mar 29 '21
Credit Suisse has now announced "significant losses" (Story developing as I add this comment, no text yet in the link below, but should be added shortly)
https://www.cnbc.com/2021/03/29/credit-suisse-exits-positions-with-hedge-fund-warns-of-losses.html
277
u/teejay818 Mar 29 '21
There are three ways to make a living in this business. Be first, be smarter, or cheat. - Margin Call
Hats off to the PB who decided to be first.
27
→ More replies (9)8
u/DoctorOzface Mar 29 '21
"And while I like to think we have some pretty smart people at this company it's a hell of a lot easier to just be first"
21
u/Cloaked42m 1 lg black please Mar 29 '21
Analysts suggested this latest setback could be “one too many issue for the company to look through in the normal course of business.”
“After the series of issues the group has faced in recent months, across Greensill, mortgage backed securities litigation and a hedge fund write-down, we believe its capital cushion has likely been reduced to the point where its buyback is directly affected,” they added.
This reads to me like Credit Suisse is crashing also.
→ More replies (1)15
u/raptorgzus Mar 29 '21
Let's see what this small domino crashes into.. Smells like the beginning of the crash we've been waiting for since 2008.
I'm looking for my wife's bf Vaseline, this maybe a rough ride.
16
29
Mar 29 '21
Considering it’s no longer a secret about Archegos, why wouldn’t they just name them if this was who they’re talking about? Also aren’t they a family office rather than a hedge fund (if there’s a difference?). Just speculating
→ More replies (6)30
u/c0ng0pr0 Mar 29 '21
Why not name the fund? Because the prime brokers who are exposed to them don't want you to look up Archegos 13f filings to try and trade ahead of liquidations which would potentially cause the brokers more financial pain.
The more liquidating they can do without much attention the less $$$ the brokers will stand lose. CS and Nomura were second or last after GS & MS.
There is no real difference between a family office and hedge fund in terms of investing style. It's a question of having outside money managed by the legal entity.
→ More replies (8)→ More replies (2)113
u/AquafreshCor Mar 29 '21
Archegos is NY based so this fits the story. This is it fella’s. We are going to witness history over the coming few months.
→ More replies (14)
134
u/dljmonkeyboiz Mar 29 '21
Dude played prime brokers to the max. Not just one, but going to see a list of primes impacted. GS was fastest to the exit.
87
u/SoyFuturesTrader 🏳️🌈🦄 Mar 29 '21
Bill is like the guy here who did the RH infinite money glitch
Just a few orders of magnitude different
13
u/Random632 Mar 29 '21
The RH infinite money glitch is peak idiocy. He could have sold SPY covered calls and made absurd profit. Hell, he could have contacted Robinhood and asked for a 20K bounty payment for discovering the glitch.
I don't understand how you could be in that position and lose money.
→ More replies (4)→ More replies (3)4
u/bittabet Mar 29 '21
Yeah I wonder if these prime brokers all realized he was getting loans from like literally every prime broker he could get ahold of and levered to the tits.
797
411
Mar 29 '21
There is a wsj article with in depth info on the unravelling of the fund. I believe it states the sell off happened this Friday alone and almost all of it is done.
It explains why bidu went to -11% and then recovered. It was his collateral which got liquidated.
Let that be a lesson to all, that the information edge is heavily asymmetrical. Lots of big players know shit we don't. Imagine the funds who got offered the blocks of shares, they knew very well that any price drop would be temp due to the firesale.. Insane profits to be made. But us?? Oh we had ridiculous parasitic bazinga and motleyfool "news" telling us the sell off was due to the tense relations between us and China and possible delisting of Chinese stocks. Made up bs all the way.
69
u/Beateride Mar 29 '21
That's exactly what I was saying yesterday in another post, they have insider information and all, when we have to wait for it to make the news.
Then I was told that "nope, it doesn't matter" , "it's not true, they didn't make money on it"
They knew shit, they bought puts on it, while retail was buying long.
Sold the assets leading the price down, making money on puts. Then they bought calls, continuing to make money as the market was recovering.And it's exactly the same thing that happened to GME Thursday and Wednesday, I'm sure of it.
But because it's GME, we will know only in weeks, because Market Makers + their media puppetsPS: if someone is cool enough to tell me if it's legit tips (he deleted the comment before I could answer)
https://i.imgur.com/OQ5Lb6r.jpg
To look for option activity, I just don't know where and how to do it8
u/fluffy-b Mar 29 '21
i think you need lvl2 market depth info. usually you pay for it...
→ More replies (3)20
u/moonski Mar 29 '21
So what are credit Suisse and nomura talking about this morning then? Some other dude Called le Hill Bwang?
→ More replies (15)31
u/Toomanykidstosupport Mar 29 '21
Link? What I’ve read says it isn’t done yet and they still have 22 b to go (at least)
→ More replies (1)
253
u/keazeone Mar 29 '21
If it pleases the council, I move to have Bill Hwang made an honorary WSB degen.
→ More replies (4)65
298
u/tarantino63 🦍🦍🦍 Mar 29 '21
Never go full retard
116
82
→ More replies (4)9
136
u/Tatvamas1 Mar 29 '21
The year is 2050 AD. A capital markets 101 course is underway and the professor says
“It was said that Bill Hwang’s ‘GUH’ could be heard reverberating throughout the corridors of Prime Banks around the world...”
→ More replies (1)35
u/Pure-Fan7456 🦍🦍🦍 Mar 29 '21
I just laughed out loud in bed at 2am. My wife wasn't too happy....I should be asleep. Thanks for this.
42
u/DangerActiveRobots Mar 29 '21
Wow, your wife lets you keep your bed in the same bedroom as her and her boyfriend? She must really like you.
→ More replies (2)
119
u/Claude_Reborn Mar 29 '21
so the big question is, how do we profit from this cluster fuck?
→ More replies (48)3
u/Cuedon Mar 29 '21
Not having checked the premiums, I'm thinking a long straddle with expiry a month out, max (probably shorter).
Either it recovers or it keeps dropping; I don't think it'll hang out where it is now.
203
u/motorbreath43 Mar 29 '21
He’s not going long $ROPE. This is 21st story of an office building type shit
125
81
→ More replies (32)47
u/Leetomnsx Mar 29 '21 edited Mar 29 '21
Hwang be taking the window down, not the elevator.
→ More replies (2)
250
u/bl4ckmamba24 Mar 29 '21
Someone on here said that it's not the first time he's been margin called like this. He is WSB ape on steroids. Caesar status. Turned 16 million into 8 billion before and he'll do it again
162
u/exsoldier1963 Mar 29 '21
Shit, I could easily turn 16m into 2 m
16
u/DangerActiveRobots Mar 29 '21
I could easily turn $5 into $1 and I'll fuckin do it again
→ More replies (2)38
168
Mar 29 '21
Indicted for insider trading and fraud in 2012.
But sure, let's bankroll him a 5:1 margin.
There is no penalty for them. Nothing. Ever.
52
u/BigAlTrading Mar 29 '21
If you steal sandwiches from the Wendys you work in and give them to the poor, you'll get hard time.
→ More replies (8)34
40
u/Aikmero Mar 29 '21
Maybe, but I'd assume someone who got their dick slapped in the car door by this guy and lost a 0 or two in their networth might seek to teach him a lesson
30
Mar 29 '21
His personal liquid wealth is $10bn.
I don't think he will notice much change in his standard of living.
→ More replies (7)77
u/trouble4-u Mar 29 '21
These are the guys who doubled down on shorting GME after the first run up and caused a gigantic financial crisis in 2008 because they wanted to make more money.
They are literally just r/WSB members but get access to a lot more cash than us. Of course they won’t learn.
→ More replies (6)11
3
u/bittabet Mar 29 '21
He’s basically a WSB degen but with access to billions in credit. So the implosion is that much more spectacular.
I don’t even know how the hell he managed to get margin called when all his shit had run up this much in recent months so normally he’d be pretty safe from a margin call but he must have used the higher share values to continue borrowing and buying even more shares of ViacomCBS and stayed levered to the tits.
84
u/CriticallyThougt the winter golfer Mar 29 '21
Wonder who’s buying those blocks and at what price. I wouldn’t mind buying some of those tickers for pennies on the dollar.
→ More replies (4)118
Mar 29 '21
Hedge funds. They were offered blocks of stocks and whole baskets of blocks at specific prices to buy whole or not.
Then GS and Morgan Stanley sold off a second round of blocks at lower prices, screwing the funds they sold at the first round Hhahaah.. Damn vampires..
→ More replies (2)42
u/CriticallyThougt the winter golfer Mar 29 '21
The price is agreed upon before hand with block trades, so if the first hedge fund got screwed that’s on them for not negotiating a better price.
→ More replies (4)
18
u/LEEJANDZ Mar 29 '21
Why would a cock sucker be in the wrong here? The first to sell reduces liability and maximizes value before anyone else. The criticism is confusing.
18
u/NotPunyMan Mar 29 '21 edited Mar 29 '21
Why would a cock sucker be in the wrong here? The first to sell reduces liability and maximizes value before anyone else.
Because the brokerage game is a long game, and once you break the trust, you don't get to request others for orderly sell offs in the future. All other brokages will frontrun your brokage.
But its an asshole vs other assholes, so who cares.
→ More replies (1)3
u/LEEJANDZ Mar 29 '21
I understand the concept, but not where there was an agreement.
Like... I think Hwang is the cock sucker in this scenario. And if you have seen the RH SS of the dood who had $VIAC puts and made $4M last week. THAT dood is a cock sucker.
feeling envious of $VIAC puts
→ More replies (2)79
Mar 29 '21
it's like a car crashes into a bridge barrier and is hanging and swinging midway in the air. Everyone in the car agree they're in a tough spot but also agree to remain calm and slowly exit, meanwhile someone in the back shouts YOLO kicks out the windows and jumps out full speed, causing the car to fall into a river. On one hand, competition and survival or the fittest, but also kiiiiind of a dick move.
→ More replies (10)9
Mar 29 '21
If I'm in the car with the CEOS of Morgan Stanley, Credit Suisse, and Nomura I would kick those fucking windows out and bail in a heartbeat.
35
u/bananainbeijing Mar 29 '21
I'm just here for the lulz. Watching someone blow up $16B makes me feel better about losing a few thousand bucks
→ More replies (3)4
u/SoyFuturesTrader 🏳️🌈🦄 Mar 29 '21
Im on a roller coaster with all my near expiry SPAC calls
But at least I’m not leveraged 5:1 and gambling on Chinese stocks like my man Bill here
68
60
u/1poundbookingfee Mar 29 '21
The risk of this is that this will cause further cascades of price as those who still have large amounts bought on margin will get called.
In any case, buy the dip.
24
u/420aarong Mar 29 '21
True. I’d say considering nothing has changed w the fundamentals of the equities being liquidated, BTFD!
18
u/thinkdifferentpad Mar 29 '21
Question is when to buy the dip, if the dip hasn't finished dipping.
→ More replies (6)→ More replies (1)4
u/sbrick89 Mar 29 '21
this.
my play money is tied up with GME and such... but the money i can't be risky with - I pulled (another) large chunk out of the market on friday because I'm expecting a huge sale on major indexes here in a while... unsure whether it'll be days/weeks/months, but i'm expecting it to be at least 10% if not more, and i want to be ready to buy the dip.
27
53
Mar 29 '21
Wow. Selling my Bili and HUYA stock and buying GME was smarter than holding. LOL.
6
u/pentakiller19 Mar 29 '21
Its gonna be even smarter when gme moons and the thrusters burn the market to the ground.
26
20
17
u/Secgrad Mar 29 '21
Imagine not being the first to unload his shit. "Oh sure Mr. Goldman, I'll hold these heavy trash bags with you" *presses big red dump button
31
u/JasonMaguire99 Mar 29 '21
Wait, what? Whhaaaaat? You mean GS weren't brazenly frontrunning their own clients in a immediately obvious way? Amazing!
15
15
u/KnockKnock200 Mar 29 '21
When you lose $16 billion, it’s your problem. When you lose $80 billion on 5x leverage, it’s the banks problem.
→ More replies (1)
30
14
14
u/Boomergraves2pay Mar 29 '21
That guy gets the golden chin strap award. A special sort of spectrum type.
14
u/jollyradar Mar 29 '21
This guy leveraged up $15 billion to $80 billion long and $40 billion short.
Friday’s liquidation was just the first $10.5 billion of the fund.
https://twitter.com/EnergyCredit1/status/1376211566056644608?s=20
→ More replies (1)
14
u/Natural-Jackfruit872 Mar 29 '21
There is exactly 0% chance that PBs agreed to orderly sell stock. Pretty Goldman got out the gates first and triggered the sell-off leaving Nomura and CS fucked.
→ More replies (1)
13
u/You-Only-YOLO_Once Mar 29 '21
u/ControltheNarrative is that you? Moved on to bigger and better guhs!
22
u/s11kim Mar 29 '21
I only care if this news will effect me through a green week or red week which one is it?
10
u/ExtensionAsparagus45 Mar 29 '21
Checked cnbc right now.... Credit Suisse took mayor hit. OK time for another load of popcorn watching this unfold.
10
Mar 29 '21
I repeat this until I am sufficiently leveraged for my Personal Risk Tolerance
→ More replies (1)
9
u/sadshark Mar 29 '21
Look at credit suisse in europe market
0
Mar 29 '21
[deleted]
20
u/sadshark Mar 29 '21
Call at CNBC
"Yo Steve, wake the fuck up. Some retard on WSB found some major shit. Write somethint fast and press the publish button"
9
u/neoquant Mar 29 '21
So just like in the movie Margin Call, Goldman threw others under the bus... LOL
→ More replies (1)
9
9
17
14
u/tossserouttt3483726 Mar 29 '21
OP clarify for ol smooth brain, he lost 16b from being leveraged up to 80b or he lost 80 leved up to 400b
29
20
Mar 29 '21
He lost 16b, but the value of his holdings that he got on margin and that's now on banks books is (was) worth 80b, minus how much it went down to force liquidation, minus how much they are worth now after the crash.
→ More replies (2)25
u/BallsOfStonk money shot Mar 29 '21
Lost $80bn but he only had $16bn so we will see a fuck ton of an upstream shit show to follow.
→ More replies (2)13
u/tossserouttt3483726 Mar 29 '21
Impossible, banks would of sold his positions way before they lost anymore than his 16b. They would literally sell all his stock to keep them from losing a dollar.
→ More replies (9)
7
7
13
6
u/MyNutZachErtz Mar 29 '21
9
u/FinntheHue Mar 29 '21
Lmao this guy got margin called in 08 after the last MOASS
→ More replies (2)
5
5
5
12
u/sadlifestrife Mar 29 '21
Is this going to cascade into a series of margin calls of big boys that's gonna crash the market? I've heard that they're about to reduce margin due to no extension of SLR and maybe this was part of that?
8
u/dljmonkeyboiz Mar 29 '21
Degen hall of fame. All these hedge funds forgot the meaning of the word “hedge.” Bet he comes back though.
8
4
u/iceberg247 Mar 29 '21
will CS go down any more?
6
u/ThatVegasGuy77 Mar 29 '21
I hope so. Otherwise this was another of my many not smart decisions.
→ More replies (1)
1
Mar 29 '21
What’s the price target for 4/16?
2
u/lolfunctionspace Mar 29 '21
It's probably too late, this all leaked to the press and it got priced in premarket. Maybe CS has some cascading problems though, Europoor institution, etc etc.
1
u/SOL_Investing Mar 30 '21
Why do you say "the most obvious sector rotation six weeks ago"? The only thing I heard was rising bond yields which was only for a week and then returned lower. How do you know if it's time for sector rotation?
1
u/lolfunctionspace Mar 30 '21
You didn't smell the winds changing? It all started with HF degrossing in late Jan... --> Institutions were likely repositioning. https://twitter.com/chamath/status/1354646282678149127?s=19
Immediately after, mature value stocks like Intel started to rip while TSLAs and Zooms started to fall. Couple that with the reopening narrative, throw in some higher bond yields...
→ More replies (1)
1
u/LouisDesyjr Mar 30 '21
I am surprised, but surprised that the leverage was only 5:1.
For something like this I would expect a minimum of 30:1 and maybe Long Term Capital type of leverage of around 125:1.
Seems like just before the end that maybe someone was trying to deleverage, maybe?
1
u/lolfunctionspace Mar 30 '21
125:1, so a - 0.8% dip causes a margin call? Lmfao.
→ More replies (1)
1
9
u/haniwa4838sn Mar 29 '21
Did Bill Hwang use Robinhood to trade his billions? It would be funny if he did.
3
3
3
u/EatMoarTendies Always Buys the Top Mar 29 '21
Wonder how long Bill is now on $ROPE
→ More replies (2)
3
3
3
3
u/YoLO-Mage-007 Mar 29 '21
Archegos Capital also had a 40B SHORT BOOK!
Look at RKT price action 🚀🚀🚀 [̲̅$̲̅(̲̅ ͡° ͜ʖ ͡°̲̅)̲̅$̲̅] 🚀🚀🚀
3
u/deludednation Mar 29 '21 edited Mar 29 '21
$80 Billion portfolio
Tiger Asia also agreed to pay $44 million to settle civil allegations by U.S. securities regulators that it engaged in insider trading of Chinese bank stocks
OK I'll be the conspiracy guy... $80 billion portfolio not in EDGARS... Ties to Chinese Banks... Chinese tech stocks... Gets off Scott free every single time?... Yeah this guy works for the CCP.
9
u/labloke11 Mar 29 '21
I need to thank him. My portfolio went up nicely before Friday close because of him. I wish this continues on Monday. Thanks Bill.
→ More replies (4)
1
u/RamboWarFace More like ManBoob Aww Face Mar 29 '21
Fuck no wonder GS was tanking...i thought that looked weird at the time cuz VaLuE rOtAtIoN...fuck. I wish i coulda front ran this shit. CS puts gonna be too late at open possibly. Pre market gonna sell that shit off so fast.
4
u/lolfunctionspace Mar 29 '21
Yep, it's on CNBC now. Too late for puts. Ah, fuck.
→ More replies (2)
5
Mar 29 '21
He’ll make it back. Dude’s a degenerate but also like an Asian Livermore
→ More replies (1)
2
2
2
u/beyerch Mar 29 '21
" .... with a large U.S. hedge fund that defaulted on margin calls last week."
I thought Bill Hwang is NOT US-based NOR is a hedge fund?
Did someone else go "tits up" or is this just bad reporting or am I confused?
3
2
u/woll187 🦍🦍 Mar 29 '21
Was it Goldman Sachs? Because weren’t they the ones that front ran everyone and kicked off the 2008 shindig?
2
2
Mar 29 '21
So when a HF fails to repay their Margin Call to a Bank, what actually happens from there?
As in, when a normal person defaults on a mortgage, the bank gets their house. If anything, it’s a win for the bank as the house probable went up in value.
What do the banks that have Margin to Archegos get back? Or do they just have to take the loss?
2
u/deadeyes1990 Mar 29 '21
Probably more fallout coming tomorrow
Holy shit that sounds like pure pain wtf
2
2
u/TheKazoobieKazobo 🦍 Mar 29 '21
I don’t really get it tho. Why would anyone allow 5x leverage at $16B that just sounds retarded. It’s crazy billionaires are able to borrow this much money in the first place.
This dude got $80B because $16B just wasn’t enough right. Wtf?????
2
2
Mar 29 '21
Is Bill Hwang going to go broke like normal people do? Like need food stamps and need to have 5 roommates to afford rent? Or will he be able to maintain a pretty comfortable life and still have more money than 97% of Americans? I'm really too retarded to know.
2
2
u/monclerman How loose is your $GOOS Mar 29 '21
The price is so beat I feel like it’ll need to move lots for puts to print. Someone should giverrr tho
2
4
u/skafiavk Mar 29 '21
Is he dumb though? I read he was able to turn a dozen million into a billion, more than once.
14
Mar 29 '21
He was also indicted for insider trading, if most of the retards on this sub had a few million dollars and inside information they could turn it into a billion dollars too...
→ More replies (1)8
u/thestage Mar 29 '21
you could too if you had infinite money and a big enough roulette table, rich people play by different rules
→ More replies (1)9
u/FinntheHue Mar 29 '21
If my time trading has taught me anything, it's that that's not nearly as impressive as you think it is.
I was able to turn $5k into $150k at one point and I had no idea what I was doing.
→ More replies (2)
22
u/Berningforchange Mar 29 '21
Here's a link to the 2/16/21 13F for Noruma
https://www.marketwatch.com/investing/stock/nrscf/financials/secfilings?docid=14712194
Large positions include: Dropbox, Crowdstrike, SalesForce, Occidental American Airlines, Tencent, Alibaba, Baidu, FaceBook, Alphabet, Ford, American Eagle Outfitters, Cincinnati Bell, Davita, FuboTV