An unknown hedge fund spread chaos on Wall Street

The names of the key players are different, but the lessons are similar. The spectacular implosion of the Archegos Capital Management hedge fund, like this year’s GameStop saga, serves to remind us of the dangers posed by extreme leverage, secret derivatives and bottom interest rates. Shares of the titans of ViacomCBS (VIACA), Discovery (DISCA) and other media outlets fell on Friday when Wall Street banks lent loans to Archegos to force the company to release its bets. This epic fire wiped out more than half of Viacom’s value last week alone. Major banks have suffered billions of dollars in losses from exposure to Archegos. Credit Suisse (CS) and Nomura fell on Monday after warning they were a major success in their earnings. The most amazing thing about Archegos ’story is that it’s a company that few people have heard of this weekend. And yet, in this age of easy money, Archegos was able to borrow so much that failure created enough waves to cross Wall Street and could affect the retirement accounts of everyday Americans. #FirstMove # CNEnprise # News.

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