Ex-Archegos trader Bill Hwang’s conviction highlights dangerous underregulation of Wall Street megabanks

WASHINGTON- Dennis Kelleher, Co-Founder, Chairman and CEO, issued the following statement following the guilty verdict in the trial of Bill Hwang, head of former investment fund Archegos.

“Bill Hwang’s massive market manipulation caused massive losses for investors and banks, rocked financial markets and exposed serious regulatory gaps in our financial system. This case highlighted the underregulation of non-bank family offices and hedge funds, their dangerous use of derivatives and leverage, and their dependence on and connections to Wall Street megabanks. This appears to be a clear example of these megabanks turning a blind eye to risky activities when big profits and bonuses are at stake.

“As we have stated repeatedly, it is imperative that crimes like those orchestrated by Bill Hwang be severely punished, both to hold the criminals accountable and to deter other would-be criminals from engaging in similar illegal activities. While prosecution, punishment and deterrence are essential, they are not enough. The wave of financial crimes that is plaguing this country will not abate until the Wall Street megabanks and their senior bankers who enable and profit from these trading activities are also prosecuted, severely punished and, where appropriate, sent to prison. After all, can it really be true that this one guy defrauded all the self-proclaimed smartest bankers on Wall Street at Goldman Sachs, Morgan Stanley and other banks? Isn’t it more likely that they knew, but their desire for big profits and bonuses overshadowed their desire to properly manage risk? And even if they improbably did not know, the case nevertheless highlighted a number of glaring failures in the most basic compliance and control systems, as detailed in an independent investigation into Credit Suisse’s involvement in the Hwang affair. Yet all of these banks are portrayed as victims, not the de facto co-conspirators they were.

“Regulators and prosecutors should be congratulated for taking on Hwang, but they have much more work to do to properly and fully protect investors, markets and financial stability.”


Better Markets is a nonprofit, nonpartisan, and independent organization founded to advance the public interest in the financial markets, support financial reform of Wall Street, and restart our financial system for all Americans. Better Markets works with allies—including many in the financial industry—to advance pro-market, pro-business, and pro-growth policies that help build a stronger, safer financial system that protects and advances Americans’ jobs, savings, retirements, and more. To learn more, visit