Clip

The Mechanism Behind Archegos Capital's Extreme Bets
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1:11:50 - 1:13:08 (01:17)

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.

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