Wells Fargo, Goldman Sachs and Morgan Stanley Hand Over $120 Million to Settle Investment Disaster

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Ah, the joys of financial mishaps! It seems that three of the grandest names in US banking—Morgan Stanley, Goldman Sachs, and Wells Fargo—are coughing up a combined total of $120 million to settle a lawsuit. Why, you ask? Well, it’s all tied to the spectacularly messy collapse of a multi-billion-dollar investment firm. Who knew finance could be so… dramatic? 😏

The lawsuit, filed by some disgruntled former shareholders of ViacomCBS (now frolicking about as Paramount Global), alleges that these titans of the banking world were hiding conflicts of interest when they cheerfully sold off ViacomCBS shares. Their negligence (or was it something else?) allegedly led to the grand implosion of Bill Hwang’s Archegos Capital Management. Yes, the same Archegos that once boasted a cool $36 billion before it spectacularly flopped. 🧐

Archegos, a “family office” (I use the term loosely), was perfectly content making huge, leveraged bets on ViacomCBS and other firms—until, of course, everything came crashing down. In the fine tradition of all great financial debacles, Archegos had some $20 billion of exposure to ViacomCBS, a fact that surely did not endear them to investors. 💸

In the heat of it all, Morgan Stanley, Goldman Sachs, and Wells Fargo, seemingly playing both sides of the field, helped Archegos place these enormous bets while simultaneously acting as underwriters for a ViacomCBS secondary offering. Oh, the tangled web we weave! 😏

But, not surprisingly, things went south. Investors—led by the Camelot Event Driven Fund (yes, Camelot, as if they were in a fairytale) and the Municipal Police Employees’ Retirement System of Baton Rouge—accused these banks of playing a game of hide and seek with their roles in the whole affair. The banks, naturally, allegedly sold off shares to avoid any lingering losses. Talk about a hasty retreat! 🏃‍♂️💨

So, what happens next? Well, this juicy settlement is still awaiting the approval of a judge in New York state court. Fingers crossed, but I wouldn’t hold my breath. 😬

Meanwhile, Morgan Stanley, Goldman Sachs, and Wells Fargo have all denied any wrongdoing. Of course, agreeing to pay $120 million just to “settle” the matter does seem a tad suspicious, doesn’t it? 🤔

And as for Hwang and his CFO, Patrick Halligan, both have been convicted of fraud over this entire circus. Hwang got 18 years in the clink, while Halligan’s looking at 8 years. But don’t fret—they’re appealing while out on bail. Because, naturally, one always deserves a second chance when they’ve caused a multi-billion-dollar disaster, right? 😆

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2025-07-17 10:26