Credit Suisse and UBS Group AG will pay fines totaling $388 million due to Credit Suisse’s risk management failures related to its dealings with Archegos Capital Management.
Facts
- Credit Suisse and UBS Group AG to pay fines of $388 million in total.
- Credit Suisse fined for significant risk management and governance failures between January 2020 and March 2021.
- Coordinated investigation by UK’s PRA, Swiss FINMA, and US Federal Reserve.
- UBS Group AG to pay $269 million to the Federal Reserve and $119 million to the PRA.
- Credit Suisse’s cooperation in resolving the issue led to a reduced PRA fine.
- Credit Suisse suffered losses of $5.1 billion after Archegos Capital Management’s collapse in March 2021.
- Bank’s risk management practices fell short of regulatory standards, leading to financial and reputational damage.
- PRA imposes the largest-ever fine due to the seriousness and widespread nature of the risk management failures.
- UBS Group AG plans to implement operational and risk management discipline across Credit Suisse to address regulatory findings.
- UBS intends to resolve Credit Suisse’s outstanding litigation and regulatory matters in the best interest of stakeholders.
