Horror. Shock. Pain.

They can do what they want’: Archegos and the $6tn world of the family office

Families are allowed to invest their own money as they wish.

Horrors, eh?

6 thoughts on “Horror. Shock. Pain.”

  1. Actually the quote refers to reporting shareholdings below the 3% (or, in takeover situations 1%) threshold. As far as short-selling, insider trading, significant holdings etc etc the same rules apply to family offices as they do to anyone else (e.g. they can’t buy >30% of a company without making a takeover bid). So the claim isn’t quite as strong as you imply – pity!

  2. I read the whole article but couldn’t find anything explaining why I should give a shit. Nor could I find anything explaining why the poor risk management of investment banks had anything to do with family offices.

    Still, it’s all grist to the ‘more regulation, more taxation’ mill.

  3. John77,

    they can’t buy >30% of a company without making a takeover bid

    Family business. Can the husband take over 29% and the wife take over another 29%, without notifying anybody?

  4. @AndrM
    Under the City Code, share dealings by concert parties are treated effectively as dealings by the bidder itself. As such, concert parties’ holdings will be aggregated with those of the bidder.

  5. @ AndrewM
    They have to report a holding >3% so No, they cannot buy 29% without telling anyone.
    Alex has already (by the time I write) dealt with the point of your question.

  6. Or an alternate perspective (courtesy Tom Luongo):

    “The biggest useable weapon the U.S. has is monetary policy. If you want to blow up China’s rising economy right now you have to allow the dollar to rise, liquidity to drop and induce panic all throughout emerging and frontier markets many of whom are now allies of Russia and China…

    If you were China how would you defend against that? By creating asymmetric time bombs that blow back on western capital markets the second the dollar begins to drain overseas liquidity.

    If I’m China, I allow Archegos to go poof and then watch the plumbing of the financial West clog up like the Suez was last week.

    This is how you play the real game.”

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