UPDATE 1-Banks to recoup as little as 5 cents on the dollar in Archegos restructuring - FT

(Adds responses from Credit Suisse, Morgan Stanley)

Feb 1 (Reuters) - Banks that lost billions from the meltdown of Archegos Capital Management will get back as little as 5 cents on the dollar from its restructuring, the Financial Times reported on Wednesday, citing people familiar with the matter.

Global banks, including Credit Suisse and Morgan Stanley, that lost more than $10 billion from the blow-up of Archegos, are expecting to recoup between 5% and 20% of their losses, according to the report.

Credit Suisse and Morgan Stanley declined to comment.

The potential legal battle is focused on billions of dollars of swaps contracts agreed between the banks and Archegos, at a time when the practice of block trading has come under regulators' scanner in the United States.

Archegos collapsed in early 2021, after its highly leveraged stock bets went sour. The family office run by Bill Hwang defaulted on margin calls, triggering losses of up to $10 billion that sent shockwaves through Wall Street. (Reporting by Manya Saini in Bengaluru; Editing by Shailesh Kuber and Anil D'Silva)