Wells Fargo Had Exposure to Archegos Capital, but Didn't Take Any Losses
Wells Fargo (NYSE: WFC) had exposure to the fallout from Archegos Capital Management, but didn't take any loses. The bank made five block trades on Monday valued at more than $2 billion, including trying to sell 18 million shares of ViacomCBS (NASDAQ: VIAC), which is one of the companies Archegos had exposure to.
"We were well collateralized at all times over the last week and no longer have any exposure," the bank said in a statement, adding that it had a prime brokerage relationship with the family office run by former Tiger Asia manager Bill Hwang.
Last week, multiple lenders hit Archegos with a multibillion-dollar margin call, which forced it to put up more collateral to its lenders. When it couldn't, lenders sold big blocks of Archegos' equity positions to try to recoup what they were owed.
Source Fool.com
