Morgan Stanley and Goldman Sachs Group Inc., along with other major banks, forced the liquidation of more than $20 billion of holdings for Hwang’s New York-based Archegos Capital Management on Friday, according to people familiar with the transactions.
Looks like someone got their trading book very wrong indeed and got liquidated.
Which does talk to that P³ and Piketty idea that r is greater than g, that the rich just pile on the cash year after year. Because they might indeed gain higher returns but only by taking on more risk. Something that doesn’t always work – risk, d’ye see?