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UBS To Pay Fed $268.5 Mln Fine Over Credit Suisse Misconduct – Crypto News
The US Federal Reserve Board on Monday announced the levying of a $268.5 million penalty against UBS, over misconduct by Credit Suisse that dates back to 2021. Earlier in March 2023, the UBS Group acquired To install Credit Suisse. The United States central bank said the bank’s misconduct involved Credit Suisse’s unsafe counterparty credit risk management practices with Archegos Capital, its former counterparty. Accordingly, a consent order has been reached in this regard, the US Fed Board said.
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UBS agrees to $268.5 million fine
According to the US Fed’s announcement, the risk management deficiency occurred 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.
“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 US 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.
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