Archegos Capital Management and global banks are in negotiations to avoid a protracted courtroom battle that would expose details of the deals that led to the unravelling of the family office, according to three people familiar with the matter.
The potential legal battle centres on billions of dollars of swaps contracts agreed between banks such as Morgan Stanley and Credit Suisse and the family office run by former hedge fund manager Bill Hwang, which spectacularly imploded last March.
The talks to agree a truce come as financial watchdogs and the Department of Justice in the US have expanded a wide-ranging probe into apparent irregularities in Wall Street’s lucrative practice of marketing large blocks of shares.
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