at least right now, this guy has criminal charges, bill hwang. this will be a support to the legal efforts they make to limit the damage [indiscernible] tom: mr. hwang has enjoyed some quality time in new york federal court in 2012. to be direct, he has left a trail of legal debris in hong kong and america. does his track record matter in these allegations to a judge? greg: i'm not sure it does to a judge, but for a jury, this will be going to trial. clearly, his misadventures with his funds years ago and how the sec had shut him down, forced to run a family office. the description in the indictment of how he use that family office to basically go well beyond what a family office should be, stepping into an actual investment powerhouse. lisa: can you put this charge into perspective with the u.s. attorney's office, southern district of new york in terms of how they view leverage, how they have been cracking down on securities fraud, manipulation, issues pertaining to family offices? is there a larger context to put these charges within? greg: i th

federals authorities have charged bill hwang and patrick halligan with fraud.ali basak has the entire indictment printed out, it looks like a manuscript. 11 criminal counts, can you walk us through what the charges are? sonali: this is required reading for lawyers across wall street, this is outlining exactly what happened, how he amassed up to 50% of the outstanding flow of some of the securities. gfx, viacom, he had an enormous amount of what was daily traded. how did the banks not know? they said the banks were misled in some of the language that was laid out, we will hear more from a press conference later from the southern district. but there is more detail here. working with another hedge fund, for example in some of the stock trading that happened in the background, the way archegos funded traded stocks through market into the close in order to inflate values of the stocks, really how the entire scene had come together. the question that remains, how will bill hwang and his team respond and what is left are the banks to say after they already incurred th

you all remember bill hwang. here is the latest from the new york times. mr. d his former top lieutenant were arrested at their homes, are expected to appear in a manhattan court today. the arrests were announced by manhattan federal prosecutors. prosecutors said the men were charged with racketeering, conspiracy, conspiracy fraud, wire fraud and a scheme to manipulate the prices of publicly traded stocks in order to boost returns. they said the plan relied heavily on leverage, help pump up the firm's portfolio from one point 5 billion to $35 billion in a single year. tom: it is not correct to speculate on this, but what we can say, with the alleged leverage that party a did not know what party b was doing, did not know what parties he was doing. did he affect that they did not know what the other parties were doing? jonathan: the new york times leading that reporting this morning. futures fade on the nasdaq, briefly unchanged. they were up much more than that early on. the s&p up 0.4%. from new york, this is bloomberg. ♪ >> keeping you up-to-date with news fro

bill hwang has been arrested a year after the collapse of the family office.rosecutors say he was behind a vast criminal scheme to manipulate banks and markets. he has pleaded not guilty to charges of fraud and will be released on bond of $100 million. european commission president ursula von der leyen is warning companies not to give in to demands to pay for gas with rubles. european banks are responding after russia cut off gas to poland and hungary a. >> our guidance here is very clear, to pay in rubles. if this is not forcing in the contract, to pay in rubles is a breach of our sanctions. companies with such contracts should not accede to russian demands. bonnie: the government's tough response has threatened economic growth. it was agreed more forceful policy measures should be taken to boost jobs according to state media. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts from more than 120 countries. shery: still ahead, mattel reports a stellar quarter with just over a billion dollars in reve

i will be linking in matt levine of bloomberg's phenomenal effort on bill hwang with the japanese ministry of finance. wang was and is trying to corner a market. he tried to corner 10 selected stocks and move them up and up in a leveraged way and we talked about this before the show, japan's government is trying to corner the jgb market by eyeing in more paper, keeping control of the yield. what is the difference? jon: the doj probably -- doj probably. the action of the boj is in conflict with the japanese finance ministry. on the same day minister, official from the ministry of finance and japan, is externally concerned on the move and fx. the bank of japan is offering to buy unlimited amount of government bonds at 0.25%. to protect the ceiling. those two things are in total conflict this morning. tom: and what is so important is the relative crisis. it is not 2002. our team and japan have a fabulous read this morning on this, the effect on japan and corona, the ministry of finance, a long time ago, dealt with a 135 yen. he is used to that except it is not 2002, it is a whole different se

. >> now, accused of -- bill hwang has been arrested on a 100 billion dollar bond. any wrongdoing. joining us now to break down all this is bloomberg's managing editor for ame a finance. is something out of a jean novel -- john like a rate novel. >> it shows that the banks were pretty unaware of the -- they each thought we are the main player here. when you put it altogether, it was a huge exposure, bigger than anyone knew. 160 billion dollars worth of exposure to stocks, starting out from a fortune of about a billion dollars. massively leveraged, continued as the stocks went up. >> what we know about the charges from u.s. prosecutors for bill phuong -- bill long. >> big charges all carrying big sentences. it mostly boils down to fraud, market manipulations of those were the two major themes of all the charges. saying he was trying to pump they stocks up and he lied to the banks to get work leverage. >> where was compliance in this? he is misstating the value of the assets. where is compliance checking? >> there certainly were bank compliance lapses. we saw that, cr

bill hwang and his former cfo have been charged with fraud. the collapse led to billions in losses for investors. former president trump is a killing a new york judge's ruling holding hint--appealing a new york judge's ruling holding him in contempt of court for failing to comply with the subpoena by the state attorney general. the challenge, filed wednesday in manhattan, seeks reversal of a naval 25 finding that mr. trump violated a court-order to deadline to hand over records to the new york attorney general letitia james. current and former world leaders have gathered in washington to pay their respect to former secretary of state madeleine albright. led by president biden and former presidents obama and clinton, about 1400 mourners packed washington national cathedral to celebrate the life of the first woman ever hold that post. madeline i rate--madeleine albright died last month at the age of 84. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i

is indicting bill hwang as well as the fund's ceo patrick halligan with racke racketeering, conspiraciesnd wire fraud pumping up the protest to $35 billion in one year. the u.s. also alleges that hwang oversaw materially false and misleading communications with global investment banks and brokerages designed to induce the counterparties to induce and extend credit to the fund while. it caused about $10 billion in losses an attorney for hwang said his client is, quote, entirely innocent of wrongdoing an attorney for halligan said her client is innocent and will be exonerated. guys >> leslie, thank you >>> facebook parent meta and pinterest will both report earnings tonight after google parent alphabet became the latest player to take a hit from a downturn in the digital a ad space. alphabet is down more than 3% so far. julia boorstin joins us with a check on the sector and what this action could mean for meta's results tonight julia. >> jon, youtube's disappointing advertising numbers build on concerns about a broad ard pullback that poses yet another challenge for meta and pinterest. bot

they were released on bail, so in the case of bill hwang, he put up $100 million so he did not have toy in jail. we know both men are due back in court on may 19. haidi: tina davis there with the details. you can get a roundup of that story and the other stories you need to know to get your day going in today's edition of daybreak. terminal subscribers can go to dayb and it is also available on mobile on the bloomberg anywhere app. you can customize settings so you just get the news that matters to you. this is bloomberg. ♪ s bloomberg. ♪ haidi: some of our early guests sharing their views on this earnings season. our next guest is higher and more volatile inflation is a headwind for stock valuations. with us is ross coaster wretch -- great to have you with us and we appreciate your time. there is so much uncertainty and so much potential for volatility. will it be the policy outlook or inflation or what is going on in china, geopolitics. so what is your approach at the moment? russ: good morning. there are a number of headwinds, and this has been a very different year than 2021.

charter >>> meantime we have white color new, probably the biggest white color pros dmugs decades, bill hwang of manipulating stock prices higher. at one point there was a view that they had something on the order of $20 billion in play that had pressed and pushed up the prices of stock, if you remember like discovery, right before they were trying to merge with warner media. also viacom, as they were discussing their plans, so lots of eyes on this. this is a former, i don't know if we call him a, a tiger cub, he was part of tiger global or tiger asia global many years ago. we should say he pled guilty in 2012 to insider trading and interestingly, we have a clip, he was one of the original folks who helped seed kathy woods rtfs take a listen. >> i met him, actually through a church we were both advisers to what was called the financial services ministry, younger people going throughout financial services industry, especially in new york city. we were exchanging stock ideas back then, and i know he bought into one of the stocks in which we had a high degree of confidence, netflix, and he hadn'