Elizabeth Warren unloads on Archegos meltdown: 'All the makings of a dangerous situation'

[DonViejo]

PUBLISHED TUE, MAR 30 202112:39 PM EDTUPDATED TUE, MAR 30 202112:41 PM EDT

Brian Schwartz
@SCHWARTZBCNBC

KEY POINTS

Sen Elizabeth Warren, a member of the powerful Senate Banking and Finance Committees, is one of the first lawmakers to respond to what turned out to be disastrous trades by Archegos.

The fund is a family office founded by former Tiger Management analyst Bill Hwang.

The funds trades sent the stock of ViacomCBS into a tailspin

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Sen. Elizabeth Warren is taking aim at Archegos Capital Management and lightly regulated hedge fund industry after their stock trades sent the market into a frenzy.

“Archegos’ meltdown had all the makings of a dangerous situation -- largely unregulated hedge fund, opaque derivatives, trading in private dark pools, high leverage, and a trader who wriggled out of the SEC’s enforcement,” Warren told CNBC in a statement.

“Regulators need to rely on more than luck to fend off risks to the financial system: we need transparency and strong oversight to ensure that the next hedge fund blowup doesn’t take the economy down with it,” she added.

Warren, who is a member of the powerful Senate Banking and Finance committees, is one of the first lawmakers to respond to what turned out to be disastrous trades by Archegos, a family office founded by former Tiger Management analyst Bill Hwang.

more
https://www.cnbc.com/2021/03/30/elizabeth-warren-on-archegos-all-the-makings-of-a-dangerous-situation.html

[gratuitous]

1. The crooks and the shady operators are constantly looking for the cracks in the system

That's why it's important to be vigilant in scrutinizing the FIRE (Finance, Insurance, Real Estate) economy. Every shadow needs to be illuminated, every crack needs to be plumbed, because the consequences can be dire. I wonder if Les Moonves himself might not be inclined to advocate for more oversight seeing as how ViacomCBS stock got clobbered by Archegos' meltdown?

[multigraincracker]

2. The Free Market regulates

it’s self. So they say.