Archegos amassed stake in Deutsche Bank - report

EPA-EFE/RONALD WITTEK

Archegos Capital Management acquired a stake in Deutsche Bank as its founder Bill Hwang had established ties with the German lender before the company defaulted on margin calls last year, the Financial Times revealed on Tuesday.

Though it acted as one of the Archegos’s lenders, Deutsche was able to pass unharmed amid the firm's default, even handing back some of the collateral taken to support the provided loans.

According to FT sources, Archegos's stake, held by derivatives, was sufficiently large to make Hwang a significant shareholder in the bank, with some stating it was close to 2% and held right up to the firm's failure.

Baha Breaking News (BBN) / SP