FILE PHOTO: People take pictures by the Morgan Stanley constructing in Times Square in New York City, New York U.S., February 20, 2020. REUTERS/Brendan McDermid/File Photo

(Reuters) – Morgan Stanley bought about $5 billion of Archegos’ shares the night before the fire sale hit rivals, CNBC reported on Tuesday, citing individuals with information of the trades.

Morgan Stanley had the consent of Archegos, run by former Tiger Management analyst Bill Hwang, to buy round its stock late Thursday, in line with the report.

The financial institution supplied the shares at a reduction, telling the hedge funds that they have been a part of a margin name that would stop the collapse of an unnamed shopper, CNBC reported.

Morgan Stanley declined to remark.

Earlier on Tuesday, Credit Suisse stated it could take a success of 4.4 billion Swiss franc ($4.72 billion) from dealings with Archegos Capital Management, prompting it to overtake the management of its funding financial institution and threat divisions.

Other banks with publicity to Archegos, together with Goldman Sachs Group Inc and Deutsche Bank AG, have unwound their trades, Reuters reported on Monday, citing sources with direct information of the transactions.

($1 = 0.9313 Swiss francs)

Reporting by Arundhati Sarkar in Bengaluru; Editing by Ramakrishnan M. and Anil D’Silva

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