Chapter
Archegos Capital's Collapse and Market Impact
1:08:30 - 1:17:08 (08:38)
Archegos Capital's high leverage bets on a handful of companies caused it to own 60-70% of some of these companies, leading to losses for banks like Credit Suisse, Morgan Stanley, and UBS, and causing down drafts in the stock market in March 2020.
Clips
The speaker discusses the issues of universities in the US running a shell game of gerrymandering statistics to lure students in that result in high student debts and low paying jobs.
1:08:30 - 1:10:14 (01:43)
Summary
The speaker discusses the issues of universities in the US running a shell game of gerrymandering statistics to lure students in that result in high student debts and low paying jobs. The problems go with incentive systems that go against what is right in society.
ChapterArchegos Capital's Collapse and Market Impact
EpisodeE78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The SEC has charged Bill Hwang of Archegos for racketeering wire fraud and conspiracy.
1:10:14 - 1:11:50 (01:36)
Summary
The SEC has charged Bill Hwang of Archegos for racketeering wire fraud and conspiracy. The firm, which started with $1.5 billion in assets in March 2020, managed to flip that to $160 billion of exposure at its peak, trading at around 100 to 1. Multiple banks including Credit Suisse and Morgan Stanley lost billions in the ensuing fallout.
ChapterArchegos Capital's Collapse and Market Impact
EpisodeE78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The Archegos Capital scandal has left many people questioning how the banks allowed this to happen.
1:11:50 - 1:13:08 (01:17)
Summary
The Archegos Capital scandal has left many people questioning how the banks allowed this to happen. The answer lies in a mechanism called a total return swap, where two parties agree on a reference asset and buy or sell protection based on the stock's movement, forcing banks to go out and buy the stock.
ChapterArchegos Capital's Collapse and Market Impact
EpisodeE78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Archegos Capital Management, a family office run by Bill Hwang, used massive leverage to make bets on a handful of stocks that eventually unraveled, causing banks to unwind the trades and leading to large losses for Archegos and some of the banks involved.
1:13:08 - 1:14:58 (01:49)
Summary
Archegos Capital Management, a family office run by Bill Hwang, used massive leverage to make bets on a handful of stocks that eventually unraveled, causing banks to unwind the trades and leading to large losses for Archegos and some of the banks involved.
ChapterArchegos Capital's Collapse and Market Impact
EpisodeE78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The lack of a clearinghouse in the equity markets is causing risk to build up and creating chaos, as banks are not aware of the true risk exposure.
1:14:58 - 1:17:08 (02:10)
Summary
The lack of a clearinghouse in the equity markets is causing risk to build up and creating chaos, as banks are not aware of the true risk exposure. Implementing a clearinghouse could solve this problem and provide greater transparency and stability.