“There was little surprise that US markets slumped at Monday’s opening bell,” said Danni Hewson, financial analyst at AJ Bell.
“Rumours continue to swirl about exactly which companies have been caught up in the Archegos saga and how badly. So far, it’s the investment banking sector bearing the brunt with Morgan Stanley and Goldman Sachs both trading down.
“There are already questions being asked about why so called ‘family offices’ are exempt from much of the scrutiny enjoyed by hedge funds and calls for the system to be tightened. With the numbers quoted today suggesting as much as $6tn is currently under the management of such firms, there is the expectation change must come quickly.”