Texas Capital Bank controversies

Archegos Capital Management position and share offering controversy

Archegos accumulated an economic position exceeding 20 percent of Texas Capital Bancshares at its peak, coinciding with a sharp rise in the share price. Texas Capital later issued 12 million shares for $300 million, with Morgan Stanley involved in both the offering and Archegos's prime-brokerage arrangements. After Archegos collapsed and its executives were charged with fraud, the bank's ownership concentration and capital raising drew scrutiny. The supplied reference does not establish that Texas Capital Bank itself was found to have committed wrongdoing.