Bill Hwang of Archegos Capital lost $20B in two days

Re:Bill Hwang of Archegos Capital lost $20B in two days by fallingfrog on Wednesday May 12, 2021 @02:32PM (#27133575)

I thought there was some kind of separation between ownership and management in an llc? Like, the company is its own entity, it makes its own decisions, and it can borrow money by itself. And then the individual shareholders are not liable for the company’s debts.

But you’re saying that the sole shareholder can also be the management?

I guess in that case it’s really up to the bank or brokerage to have enough sense to not lend your llc money if the business plan is to fly to Vegas and put it all on red..

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Re:Bill Hwang of Archegos Capital lost $20B in two days by fennecfoxen on Wednesday May 12, 2021 @05:49PM (#27135561)

> But you’re saying that the sole shareholder can also be the management?

Yeah, there are plenty of single-owner LLCs. It's the go-to small-company structure.

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Re:Bill Hwang of Archegos Capital lost $20B in two days by nradov on Wednesday May 12, 2021 @02:48PM (#27133753)

Yes which is exactly why banks and brokerages don't lend to LLCs without significant collateral and/or co-signers.

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