. According to reports, banks allowed him to lever his positions up to eight times — so for every security he borrowed, he was loaned seven more.
If anyone should be hauled in front of Congress and asked about this shambolic mess, it's the bankers. Banks are supposed to follow know your customer/client guidelines. That means they are supposed to use their best judgement to determine if someone might be too reckless, unfit to trade in size. Instead, we live in a world where the banks let someone who was banned from trading in Hong Kong and who paid millions in fines for securities violations to lever up on derivatives that would let him run around the market undetected because he knew the right guys, who said thatI do not need to tell them this because they know it, but the bankers who let this happen are clowns. As one executive at a bank with exposure to Hwang toldThis incident is hard to defend, but not hard to explain.
, Goldman started working with Hwang in 2020 after years of internal lobbying to remove him from the bank's blacklist.vacate the order
lopezlinette Regardless of how obvious major banks and investmentors will overlook anything if it's making them money ?