Could an Archegos blindside banks in Europe? Not really
Archegos’ banks were burnt by its hidden US swaps – in much of Europe, they would have to be public
Firms of all stripes like to complain about regulation. But thanks to disclosure rules that exist in much of Europe but not in the US, prime brokers would have been able to avoid huge losses, had the Archegos disaster involved stocks listed in European countries.
The collapse of Archegos Capital Management at the end of March inflicted more than $10 billion of losses on several prime brokers. The banks say they were unaware of the highly leveraged and concentrated positions the family office
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