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July 10, 2024

Former Archegos Trader Bill Hwang’s Conviction Highlights Dangerous Under-regulation of Wall Street’s Megabanks

WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President, and CEO, issued the following statement in connection with the guilty verdict in the trial of Bill Hwang, head of the former Archegos investment fund.

“Bill Hwang’s massive market manipulation caused huge losses among investors and banks, shook the financial markets, and highlighted major regulatory vulnerabilities in our financial system. This case highlighted the under-regulation of nonbanks family offices and hedge funds, and their dangerous use of derivatives and leverage, as well as their dependence on and interconnection with Wall Street’s megabanks. This appears to be a clear example of those megabanks turning a blind eye to risky activity when big profits and bonuses are on the line.

“As we have repeatedly stated, it is essential that crimes like those orchestrated by Bill Hwang be severely punished, both to hold lawbreakers accountable and to deter other potential lawbreakers from engaging in similar illegal conduct. This prosecution, punishment, and deterrence is essential, but it is not enough.  The financial crime wave that plagues this country won’t stop until Wall Street’s megabanks and their senior bankers, who enable and profit from these trading activities, are also prosecuted, severely punished, and, when appropriate, sent to prison. After all, can it really be true that this one guy fooled all the self-proclaimed smartest bankers on Wall Street at Goldman Sachs, Morgan Stanley, and the other banks? Isn’t more likely that they knew, but their desire for big profits and bonuses overwhelmed the desire for appropriate risk management? And, even if implausibly they didn’t know, this case nonetheless highlighted the many egregious failures of the most basic systems of compliance and controls, as detailed in the independent investigation of Credit Suisse’s involvement with Hwang. Yet, all those banks get portrayed as victims rather than de facto co-conspirators that they were.

“Regulators and prosecutors are to be congratulated for going after Hwang, but they also have much, much more to do to properly and fully protect investors, markets, and financial stability.”


Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit

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