NEW YORK, Nov 15 (Reuters) - Bill Hwang, the founder of

Archegos Capital Management, should spend 21 years in prison for

running a market manipulation scheme that wiped out his $36

billion firm and cost its lenders more than $10 billion, federal

prosecutors said on Friday.

Hwang, 60, faces a scheduled Nov. 20 sentencing in Manhattan

federal court after being convicted in July on 10 criminal

charges including securities and wire fraud and racketeering

conspiracy.

Prosecutors accused Hwang of lying to banks about Archegos'

portfolio so he could borrow money aggressively and make

concentrated bets on media and technology stocks such as

ViacomCBS, through so-called total return swaps.

Hwang amassed $160 billion of exposure to stocks, but was

unable to meet margin calls as prices began falling.

This led to Archegos' demise in March 2021 and caused big

losses for banks such as Credit Suisse, now part of UBS

, and Nomura Holdings ( NMR ) as various banks unloaded

stocks backing Hwang's swaps.

Hwang did not testify at his two-month trial. He is expected

to appeal his conviction.

On Nov. 8, Hwang's lawyers said he should receive no prison

time.

The lawyers said prosecutors did not and cannot prove

Hwang's alleged lies caused losses for banks. They also said

Hwang's age, cardiovascular disease, philanthropy and low risk

of recidivism weighed against putting him behind bars.

Hwang's co-defendant, former Archegos Chief Financial

Officer Patrick Halligan, was convicted at the same trial on

three criminal charges. His sentencing is scheduled for Jan. 27,

2025.

(Reporting by Jonathan Stempel in New York)