Regulators in DC are starting to feel the pressure to address the fallout from Archegos Capital, the faltering family firm that could inflict up to $10 billion in losses on some of the world’s largest banks.

“We need transparency and strong oversight to ensure that the next hedge fund blowup doesn't take the economy down with it,” Sen. Elizabeth Warren (D-Mass.) said in a statement provided to Yahoo Finance.

Senate Banking Committee Chairman Sherrod Brown (D-Ohio) said in a statement that he expects the Securities and Exchange Commission and other regulators "to take a closer look."

Bloomberg reported that the Securities and Exchange Commission and the Financial Industry Regulatory Authority phoned banks on Monday to learn more about the abrupt liquidation of over $20 billion in stocks linked to Archegos.

The episode raises questions about regulation of large investment firms managing family wealth, in addition to disclosure requirements surrounding derivative products like total return swaps and contracts-for-difference.

“I don’t think either of those issues would have been on Washington’s to-do list without the market turmoil caused by this incident,” Compass Point analyst Isaac Boltansky told Yahoo Finance.

Although Nomura disclosed that it could be impacted by as much as $2 billion, Credit Suisse has yet to quantify the hit it expects to take.

JPMorgan’s global investment banks team now projects industry-wide losses in the range of $5 billion to $10 billion, significantly more than its initial estimate of $2.5 billion to $5 billion.

“We are still puzzled why [Credit Suisse] and Nomura have been unable to unwind all their positions at this point,” the JPMorgan analysts wrote Tuesday.

Disclosure of stock holdings

Bad bets at Archegos pushed lenders to initiate a margin call, in which the borrower is asked to put up more cash or collateral to cover its losses.

Steep sell-offs late last week in Archegos-linked stocks like ViacomCBS (VIAC), Discovery Inc. (DISCA), and Baidu (9888.HK) suggested that a fire sale was happening.

It wasn’t until when Credit Suisse and Nomura disclosed over the weekend the possibility of sustaining material losses in its relationship with the hedge fund, which was later identified as Archegos.

One challenge for regulators is the obscurity by which Bill Hwang, a former equity analyst at Tiger Management who founded Archegos, was able to amass leveraged positions in those stocks.

Investors owning more than 5% in a U.S-listed company must disclose those holdings, per Section 13 of the Securities Exchange Act.