Senator Elizabeth Warren, D-Mass., Holds a press conference at the Capitol on March 1, 2021.

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Senator Elizabeth Warren is targeting Archegos Capital Management and the lightly regulated hedge fund industry after her stock deals frenzied the market late last week.

“The Archegos collapse had all the prerequisites for a dangerous situation – largely unregulated hedge funds, opaque derivatives, private dark pool trading, high leverage and a trader who tore himself out of SEC enforcement,” Warren told CNBC in a statement on Tuesday.

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When Credit Suisse and Nomura, two top Archegos brokers, announced early Monday that they were facing losses that could be “significant” to banks, rival firms Goldman Sachs and Morgan Stanley had, according to data from already discharged their positions knowledge of the matter. They asked for anonymity to talk about private negotiations.

Goldman managed to sell the majority of the shares on Friday in connection with its margin calls on Archegos, which, according to one of the people, helped the company avoid losses in the aftermath. Morgan Stanley sold $ 15 billion worth of shares in a matter of days trying to avoid significant losses, CNBC’s Leslie Picker reported.

– CNBC’s Hugh Son and Leslie Picker contributed to this report.