Archegos debacle reveals hidden risk of banks’ lucrative swaps business

Financial Times – In a story about the Archegos Family Office debacle, Healthy Markets Executive Director Tyler Gellasch is quoted saying “We have a fundamental problem in the reporting of holdings of synthetic equity that is not secret and is not new. If there are five different banks providing financing to a single client, each bank may not know it, and may instead think it can sell its exposure to another bank if they run into trouble — but they can’t, because those banks are already exposed.” (Full Story).

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