Hwang Jailed

Hwang Jailed

Bill Hwang, the founder of Archegos, has been jailed for 18 years for market deception. Mr. Hwang used derivatives to drive the price of a number of shares which suddenly fell leaving a number of banks nursing $10 billion in losses.

Adani Charged with Bribery

Indian billionaire, Gautram Adani, has been charged with bribing Indian officials in order to win favorable terms for solar power contracts. The supporter of Indian premier Modi, he is accused of borrowing money from US banks and using some of the proceeds to pay $250 million in bribes. The trail is apparently documented in PowerPoint presentations. The long reach of US justice is clear from this Department of Justice and SEC case.

FTX Co-Founder Spared Jail

Gary Wang, a co-founder of FTX, has been spared jail. He was sentenced to time served and ordered to forfeit his $11 billion in earnings from the FTX fraud. The judge praised him for immediately travelling to the US and assisting with inquiries.

SRT Market Grows It would appear that the US has developed a taste for the market in Systemic Risk Transfers. This is a deal where the risk on a pool of credit assets is transferred to investors in return for a fee. In some cases, banks lend money to these investors to leverage this trade. Up to $16.6 billion in SRT’s has been booked for the first nine months of the year. I am sure I have read this story before. Did it have a happy ending?