Archegos Drama May Spur New Regulations

The transcript discusses the SEC's ongoing conversations with banks regarding recent financial issues, highlighting Wells Fargo's actions to unwind its exposure and the resulting impact on bank stocks. It addresses the significant losses faced by international banks and investor concerns about risk management, particularly at Credit Suisse and Nomura. The discussion also covers the role of leverage in the banking system and the need for regulatory oversight by the SEC, CFTC, and potentially other bodies like FSOC and Janet Yellen, especially concerning hedge funds and family offices.

What recent action did Wells Fargo take in response to the SEC discussions?

• Ignored the issue

• Unwound its exposure

• Acquired more shares

• Increased its exposure

Which banks are primarily mentioned as having risk management concerns?

• Barclays and HSBC

• Credit Suisse and Nomura

• Deutsche Bank and UBS

• Goldman Sachs and Morgan Stanley

What is a major question raised about Archigos?

• How it managed to avoid taxes

• How it amassed leverage without rigorous disclosure

• How it became a bank

• How it acquired other hedge funds

Which regulatory bodies are responsible for monitoring the swaps market?

• SEC and CFTC

• Federal Reserve and IMF

• World Bank and WTO

• FDIC and OCC

Who might take a broader look at hedge funds and family offices due to leverage issues?

• The President

• The World Bank

• The Federal Reserve

• F Sock and Janet Yellen