UBS To Pay Fed $268.5 Mln Fine Over Credit Suisse Misconduct
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UBS Agrees On $268.5 Million Fine
According to the US Fed’s announcement, the risk management deficiency occured on Credit Suisse’s part due to the default of Archegos in 2021. Credit Suisse had then suffered approximately $5.5 billion in losses thanks to the default, a statement from the US Federal Reserve said. Yet, Credit Suisse failed to adequately manage the risk posed by Archegos despite repeated warnings, the central bank’s Board explained. An investigation into Credit Suisse by the Federal Reserve Bank of New York identified longstanding deficiencies in the U.S. operations’ risk
management, the statement said.
“The Board is requiring Credit Suisse to improve counterparty credit risk management practices and to address additional longstanding deficiencies in other risk management programs at Credit Suisse’s U.S. operations.”
Previously, regulators in Switzerland and England have taken similar actions against the now-acquired bank. The Swiss Financial Market Supervisory Authority and the Bank of England’s Prudential Regulation Authority have together levied a fine of approximately $387 million on the bank. The $5.5 billion Archegos default in 2021 compelled Credit Suisse to raise $1.9 billion.
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