by Pam Martens and Russ Martens
Wall Street on Parade
On Tuesday, March 30, Senator Elizabeth Warren provided the following statement to CNBC regarding the blowup of the Archegos Capital Management hedge fund.
“Archegos’ meltdown had all the makings of a dangerous situation — largely unregulated hedge fund, opaque derivatives, trading in private dark pools, high leverage, and a trader who wriggled out of the SEC’s enforcement.”
All of the elements of that statement were well known at that point, except one. No one in mainstream media at that time, or since, was talking about Wall Street’s Dark Pools in connection with the implosion of Archegos. (Dark Pools are opaque, thinly regulated trading platforms that function much like private stock exchanges operating inside the biggest banks on Wall Street. Through some twisted reasoning by the SEC, the banks are even allowed to trade shares of their own bank’s stock.)