Archegos Capital 2021: Total Return Swaps & Prime Brokerage Counterparty Gap | GP/LP Analysis — 3 Red Flags | EP09 T2

Bill Hwang didn't hide the position. He distributed it. Six prime brokers simultaneously, each seeing only its own slice of a thirty-six billion dollar concentrated bet on the same stocks. Each bank thought they had a manageable counterparty. None of them knew they were all financing the same trade. This is the analysis from the bank's side — how the fee revenue from a prime brokerage relationship corrupts the risk committee's ability to ask the question that would end it. What a GP or LP requires in counterparty onboarding before the margin call makes the question irrelevant.