Archive · 16 Sep 2025
Goldman Sachs and Morgan Stanley Win Archegos Appeal
Imagine a big investment company called Archegos that made risky bets.
When things went wrong, the company collapsed.
Investors who lost money sued big banks, Goldman Sachs and Morgan Stanley, claiming they helped cause the collapse by trading on inside information.
But a court said the banks didn't break the rules.
The court decided the banks didn't have a special responsibility to Archegos and weren't trading on secret info.
The founder of Archegos, Bill Hwang, was found guilty of fraud in a separate case.
Both Hwang and the former CFO are appealing their convictions.
Goldman Sachs and Morgan Stanley defeated appeals by Archegos investors.
The appeals court said Archegos was not an insider that owed fiduciary duties.
The court found no proof the banks tipped preferred clients about Archegos' issues.
Bill Hwang, Archegos founder, and former CFO are appealing their fraud convictions.
Archegos' collapse resulted from Hwang's use of total return swaps.
- Who
- Goldman Sachs, Morgan Stanley, and investors who lost money due to the Archegos collapse.
- What
- The 2nd U.S. Circuit Court of Appeals ruled that Goldman Sachs and Morgan Stanley were not liable for insider trading related to the Archegos Capital Management collapse.
- When
- The court made its decision on Tuesday, September 16.
- Where
- 2nd U.S. Circuit Court of Appeals in Manhattan
- Why
- Investors claimed that Goldman Sachs and Morgan Stanley's market manipulation and insider trading fueled the collapse of Archegos Capital Management.
- Event
- Investors' appeal against Goldman Sachs and Morgan Stanley
- Court
- 2nd U.S. Circuit Court of Appeals in Manhattan
- Ruling
- Goldman Sachs and Morgan Stanley not liable for insider trading
- Involved Parties
- Goldman Sachs, Morgan Stanley, Archegos Capital Management investors
- Archegos Collapse Date
- March 2021
- Archegos Founder
- Bill Hwang
- Hwang Conviction
- Fraud in July 2024