UBS To Pay Fed $268.5 Mln Fine Over Credit Suisse Misconduct


The US Federal Reserve Board on Monday introduced levying of a $268.5 million penalty towards UBS, over misconduct by Credit Suisse that dates again to 2021. Earlier in March 2023, the united statesGroup acquired Credit score Suisse. The USA central financial institution stated the financial institution’s misconduct concerned Credit score Suisse’s unsafe counterparty credit score danger administration practices with Archegos Capital, its former counterparty. Accordingly, a consent order has been reached on this regard, the US Fed Board stated.

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UBS Agrees On $268.5 Million Tremendous

In response to the US Fed’s announcement, the danger administration deficiency occured on Credit score Suisse’s half as a result of default of Archegos in 2021. Credit score Suisse had then suffered roughly $5.5 billion in losses due to the default, a press release from the US Federal Reserve said. But, Credit score Suisse did not adequately handle the danger posed by Archegos regardless of repeated warnings, the central financial institution’s Board defined. An investigation into Credit score Suisse by the Federal Reserve Financial institution of New York recognized longstanding deficiencies within the U.S. operations’ danger
administration, the assertion stated.

“The Board is requiring Credit score Suisse to enhance counterparty credit score danger administration practices and to deal with further longstanding deficiencies in different danger administration applications at Credit score Suisse’s U.S. operations.”

Beforehand, regulators in Switzerland and England have taken related actions towards the now-acquired financial institution. The Swiss Monetary Market Supervisory Authority and the Financial institution of England’s Prudential Regulation Authority have collectively levied a tremendous of roughly $387 million on the financial institution. The $5.5 billion Archegos default in 2021 compelled Credit score Suisse to boost $1.9 billion.

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Anvesh experiences main crypto updates round regulation, lawsuits and buying and selling traits. Revealed round 1,000 articles and relying on crypto and net 3.0. He’s presently primarily based in Hyderabad, India. Attain out to him at anvesh@coingape.com or twitter.com/BitcoinReddy

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