by Pam Martens and Russ Martens
Wall Street on Parade
Yesterday, Senator Sherrod Brown, the Chair of the Senate Banking Committee, released the content of letters he had sent to Goldman Sachs, Morgan Stanley, Credit Suisse and Nomura regarding their interactions with Archegos Capital Management. Archegos is the hedge fund styled as a “family office,” that is making headlines around the world for blowing itself up within a week’s time while inflicting billions of dollars of losses on what are supposed to be heavily supervised global banks.
The letters to Goldman Sachs, Morgan Stanley and Nomura were addressed to their CEOs while the letter to Credit Suisse went to its General Counsel. All four of the letters contained the same ten questions, with only minor variations.
Questions five, six and seven of Brown’s letter open some very thorny subjects that could have serious legal ramifications for the banks involved.
Question five asks this: