and charlie gasparino has exclusive details on archegos' bill wang and how he's fighting back against rumors that he's been using the same collateral but with different banks, and the banks are furious. okay? obviously. but there's more to this story that continues to be the slow motion train wreck. let's first get to a fox business alert. as president biden prepares to update the nation on his target for adult vaccination eligibility, corporate america is kicking into high gear. today alone we've got these pieces of news: ford says a flexible hybrid work model will start in july. pwc, the accounting giant, will open all of its offices in september. and wells fargo has set a post-labor day return to office target. what does that mean for upward? this is a company that hooks them up with workers. it has the stock gains to prove how asking is successful its business model has been, upward shares have seen a 674% gain just the past year. upward upwork is the largest global platform for placing and hiring workers, and we've got ceo caden brown. all of this happening, some within about 45

and in letting them slide, one literally fell through the cracks, and that one was bill wang which is wang is an outlier, but they will now strengthen their oversight of the family office relationships. they also fear that the sec, again, is going to come down hard on him. they better react before the sec comes to town which they think -- this is described to me as a layup for gary gensler, the new sec chief, in terms of imposing some discipline on the family office relationship. again, it got out of hand because these guys, you know, bill wang was a huge client of all these firms. and, you know -- liz: yeah, but -- >> i know. i'm just telling you why it happened. liz: they get dollar signs in their eyes, oh, he's a good client. yeah, he's so good, look what happened. >> you know, that's funny -- it's a great point, liz. i was talking to somebody who used to work for goldman sachs' prime brokerage which does the work with these big clients, just tells you how they got out unscathed, we don't make nickels to lose dollars. that's the word at goldman sachs. that's how they operate with t

brothers also collapsed you starting to see that again the debt crisis has risen again you might say bill wang of arc 5 of ghosts he you know his fund collapsed in a spectacular fashion with a massive margin call up to about $30000000000.00 margin call he received and it looks like he's really impacted not only did like c.b.s. viacom c.b.s. fall by like 27 percent as all his shares are if i had to be sold off by the counterparty banks but the banks themselves i credit suisse have been head credit suisse warns and pre-market statement of a highly significant hit to its 1st quarter results after it began exiting positions with a large us hedge fund that defaulted on margin calls last week so play this as a tragedy or a comedy you know that's always the question if i go tragic. that would be one way to go down the tragedy path or i could go down the comedy path either one or there's tragic comedy there's a big mix of both if i go down the tragedy path things could get woolly so the 1st time was tragedy we cover that 2008 this time is comedy because it's the 2nd time so if it happens again in the

speaking of that, let's go to bill wang. he lost a whopping $20 billion fortune in two days. can read the full story in "bloomberg businessweek." joining us is erik schatzker who wrote the story. eric, let me first ask about why we did not know this guy. we sort of heard about him in the tiger days and after insider trading, but he basically left with a charlie brown walk and $200 million, then made a fortune before losing it all. eric: simple answer, he formed a family office which is quieter than a hedge fund. when he bet on stocks, he used -- agreements. one of the things that swaps allowed was -- he is effectively using brokers, banks that he deals with, as a front. they gave him leverage. that is we gnash that is why we never saw his name appear in securities filings. we had no idea he was the single largest holder of viacom and another -- a number of others before it exploded and the financial equivalent of a supernova. matt: the interesting about your story is that -- the dichotomy we see in his character. on one hand, he lists family and charity as one of the top thin

it is only a matter of time before another firm implodes in a matter similar to bill wang's fund. >> it is highly likely we are going to have another situation like that. these things, when they come, like we are experiencing, where out of the blue you hear of some major loss somewhere, they tend to continue to cascade until the market cracks, and flushes the risk out of the system. >> joining us with the latest is the bloomberg reporter who got that exclusive interview. he is concerned, but you have been talking to bankers, prime brokerages over the last week, with a huge team of bloomberg reporters. is anyone finding similarly overleveraged whales? >> you know what is amazing? it is across so many different asset classes, it's hard to keep track of. this is not the first time we have seen hiccups among leveraged funds in the last 20 months. the basis traits debacle started the beginning of last year in late 2019, that required repo market intervention, then we saw gamestop, now we see this. massive issues we have seen a couple of times in a row. something that really struck me is t

bill wang, of course, runs the family business called archegos. citi boosting its rating on the shares to a buy. and as we said, discovery falling right now 3.6%. >>> the crown of the world's richest man is now perched firmly back on amazon ceo's jeff bezos head as chatter intensifies ahead of tomorrow's earnings report. charlie gasparino, now what? >> you know, liz, i think -- i could be wrong, i'm looking at my notes here, but i could be wrong, i made and you made jeff bezos even richer. i think -- liz: oh, my god, i thought you were going to say i made and you made a mistake. >> no, yet. [laughter] over the last couple days, we've been reporting the9 chatter among traders and investors that amazon.com will at some point be splitting its shares at $3,400 or whatever it is right now, 3,472. a lot of people, a lot of investors say it's too expensive for the average retail buyer to hold. amazon's stock has been largely flat over the last nine months. one of the reasons why is because it's gotten so expensive, and plus jeff jeff bezos is financing h

european bank credit suisse has gotten into some to hot water here with this family office run by bill wangue to the fact that they had been their prime dealer, broker, lender, whatever, to finance big positions in viacom and discovery. the sec here in the u.s. is investigating this. a, any exposure for you guys? i mow e you're not necessarily one of the big banks, but you do do financial and security lending what do you hear about this type of situation, and how do you avoid getting into hot water with clients who appear to be offering great business but then get into trouble? >> well, liz, i cannot comment much on the specific situation you're mentioning here because we have no involvement, we have no exposure. but to your point -- liz: okay. >> -- it is probably necessary to reflect on how much regulation is needed here and maybe some more focused and targeted regulation is required across, you know, the financial services here. but more specifically for the banking industry, it's all about, as you were alluding to, you know, knowing your clients, transparency. liz: yeah. >> particularly

moving on capital management chief bill wang has put together of high public relation legal team as he questions over his office in the tens of billions of dollars in additional losses that spread across the financial sector. to charlie gasparino on the details of this one. >> you always think of the big wall street firms like goldman sachs, credit suisse, morgan stanley, the smartest people, the best and the brightest and they always know what's going on in the market, a lot of times they do not know what is going on in the market and this may be a simple case of how he was able to build up massive leverage positions. intake business of a derivative market where you can borrow over hear from credit suisse, go 85% go massively leverage on a position of a basket of stocks that the firm owns and do it here with goldman and do it here with morgan and as the stocks go up you increase, you don't cash out and they don't know the year increasing in every place in one false move the whole "house of cards" collapse. that could be human error into groups. but the sec is still looking at it to se

and bill wang, and i don't think i'm speaking out of turn, he pled guilty nine years ago and they paid fines between $45 and $60 million and here we are back in business, it speaks volumes as the amount of liquidity and people keep going back to the well that is a the bigger problem and i'm sure sheila could speak on that. >> let's bring her in now. sheila bear is former fdic chair and now director of the culver alliance >> thanks for having me. >> so does this say to you that the u.s. banking system is terrific in risk management, it is terrific in terms of the cap cal that they have stored up or does it tell you that we have a problem. >> it says we have a problem there was a lot of risk building up in the system, a lot of exposure maybe they dodged the bullet but there are people on the other side of some of the sales that did not dodge the bullet they have good risk management suggests that they didn't to let this happen to begin with and maybe they were acting more quickly with better information in terms of dodging the bullet, whether they acted cally, i don't know whether they a

matt: i don't know if anyone has tape of bill wang saying archigos.ays to say it. i imagine him having lunch with julian robertson, saying, archigos. dani burger joining us from london. u.k. prime minister boris johnson has outlined the pathway out of lockdown for england. he confirmed some restaurants, pubs, and nonessential shops will open again next week. foreign travel is set to remain until may 17. johnson has not ruled out that it could be extended if infections search elsewhere. -- surge elsewhere. >> we cannot be complacent. we have seen how this story goes. we set out our roadmap, and we are sticking with it. we do not want the virus reimported from abroad. there is a surge in other parts of the world that we have to be mindful of. things seem set for may 17, but we will keep things under review. matt: sylvia dall'angelo, senior economist, hermes fund managers is still with us. england has done exceptionally well when compared to its former european mates in terms of vaccinating the population. it is important to remember how poorly england d

right after giant investment banks liquidate bill wang's stake in tencent and then they sell at a discounthy i think the story is interesting. that brings us to credit suisse. ceo thomas gottstein is facing continued questions, but this time from his own staff. thomas gottstein held a contentious conference call late tuesday with dozens of managing directors. and i understand why there would be questions. joining us is bloomberg's dani burger. he kept his job, even though he just came into it. other people who just came into their jobs in the newly restructured bank following his strategy lost them. is that one of the big issues that he had to face? dani: i don't think people are necessarily saying, why do you still have this job? why don't you go? he is so new. a lot of the scandals that took place were already ongoing before thomas gottstein took the lead at credit suisse. all of these senior management are now facing a lot of stock options that they hold that are worth so much less. credit suisse has fallen 15% this year already while rivals' stocks are up. questions had to do with why

and the cover of "bloomberg businessweek" really breaks down billowing, karen -- bill wang, karen archegoss of who he is, his successes and gigantic failure. i highly recommend reading them them probably being done with the archegos story. coming up, demand for chips is surging, but so is the industry's environmental impact. each new generation of semi conductors requires more energy, water and greenhouse gases to create. we will look into that story next. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open." we are 41 minutes into the session and we are looking at kind of a soft day. the ftse has had a great week, especially compared to the softness we have seen on the continent and in the u.s. it is sort of taking a breather, down 2/3, almost to 0.25%. we are down a little today. of course, things could change on a dime given we are all watching the fed so closely. federal reserve bank of san francisco president mary daly remains bullish on a rebound for the u.s. economy but warned there is still a long way to go before the recovery is complete. she spoke exclu

wang. plus, bill dudley says policymakers risk falling behind the curve with their need to see more progresscommitted to what the economy -- to let the economy run hot ahead of that. >> the growth we are smacking in the second half of this year is going to be strong. >> i think there will be more inflation in 2021 then what we have seen in recent years. >> headline inflation is likely to move above 2%. >> we know there is going to be a price surge this year. >> i know we have a long way to go. >> we expect in our baseline most of that to be transitory and for inflation to return later this year to around 2%. >> we want inflation to average 2% over time. we get that, that is when we will raise interest rates. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute.

wang. >> i'm jessica aguirre. president biden and his administration are focusing on the economy in hopes of boosting it with a robust and costly infrastructure billhouse is also trying to get ahead of the fight before congress returns next week. nbc's alice barr has the latest from washington. >> reporter: president biden today putting dollars to his sense of priority, laying out a wish list for his first budget to congress. >> i look forward to working with congress to advance these and other priorities. >> reporter: it is a $1.5 trillion blueprint that significantly increases spending in areas outside of defense. the white house calling for billions to boost low income schools, invest in cancer research, and tackle climate change. >> this is the beginning of what we know is a long journey. >> reporter: it comes amid republican pushback overspending trillions on covid relief and now a massive infrastructure proposal. >> why budget at all if you are going to recognize no upper bound limit on what you are going to spend? >> reporter: transportation secretary pete buttigieg defending the need for an infrastructure overhaul. >> it is meeting the cha

wang. now that the derek chauvin trial is over the focus turns to police ramping up pressure on congress to pass the george floyd justice and policing act. the billend some policing techniques such as chokeholds. as for derek chauvin, he's being held in a maximum security prison in minnesota, his mug shot was released today. >>> will this verdict be a moment or a movement? police reform advocates say it's time to translate yesterday's verdict into real change nationwide. here in the bay area, at least one major police chief is vowing to help lead that reform. nbc bay area's aunusual arassa spoke with oakland's chief along with a local civil rights activist about what happens next. >> reporter: this is a time for real change, real meaning flt change. >> reporter: when 12 jurors in minneapolis found a former police officer guilty of murdering george floyd, the u.s. justice department wasted no time announcing a sweeping, new investigation into the police department derek chauvin worked for. the doj wants to know if the minneapolis police department has a history of breaking the law. it's known as a pattern and practice investigation and it's the sa