Archegos Founder Bill Hwang, Former CFO Patrick Halligan Charged With Fraud
ForbesAPR 2022
Archegos Founder Bill Hwang Heads to Trial
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The Spin
Narrative A
Hwang engaged in one of the most damaging market manipulation schemes in recent memory and must be held accountable for the billions of dollars he cost investors and financial institutions. By abusing risky financial instruments, Hwang's attorneys will argue that none of his trades were unlawful. However, his systematic market abuse constituted a willful market manipulation to deceive investors.
Narrative B
Though Bill Hwang didn't manage his positions especially ethically while running Archegos, he didn't commit any crimes. The government is trying to further punish him by pursuing novel market manipulation theories without precedent or legal standing. This trial could open the floodgates for prosecutors to punish all Wall Street firms and usher in arbitrary charges that aren't based on the letter of the law.