$268.5 million fine from Fed to UBS

The US Federal Reserve (Fed) has fined Zurich-based bank UBS $268.5 million for risk management failures in the transactions of Credit Suisse, which it acquired in June, with Archegos Capital Management.

In a statement from the Fed, approximately 5.5 billion dollars in 2021 due to the default of Archegos, an investment fund of Credit Suisse. dollar reported damage.

Pointing out that Credit Suisse was unable to adequately manage the risk posed by Archegos despite repeated warnings, the statement said that the Fed’s Board of Directors should improve its counterparty credit risk management practices from Credit Suisse and that the bank’s USA It was stated that he wanted it to eliminate long-standing deficiencies in other risk management programs in its operations.

$268.5 million in fines

In the statement, it was reported that the Fed fined UBS $ 268.5 million in this context.

The action of the Fed Governing Body, the Swiss Financial Market Supervisory Authority and England Pointing out that the Central Bank was taken with the measures of the Prudential Regulatory Authority (PRA), it was noted that the sum of the penalties announced by the Board and the PRA was approximately 387 million dollars.

ENGLAND ALSO PUNISHED

In a statement from the Bank of England (BoE), it was reported that the PRA fined Credit Suisse £87m for significant failures in risk management related to Archegos.

Pointing out that the amount in question is the highest fine issued by the PRA, the statement emphasized that this is the only time a PRA sanctions investigation has detected violations of the four basic PRA rules.

UBS TAKES CREDIT SUISSE

After the banking crisis that started in the USA in March, there was a Credit Suisse panic in Europe. The developments after the Saudi National Bank, the biggest partner of Credit Suisse bank, announced that it would not increase its capital, dragged the bank to the brink of bankruptcy.

Switzerland’s largest bank, UBS, announced that it would buy 167-year-old Credit Suisse for 3 billion francs, with the government’s liquidity support of 200 billion francs.

Zurich-based UBS completed its state-aided acquisition of rival Credit Suisse in June. (AA)

You may be interestedMarkets locked in FedYou may be interestedCryptos caught in Fed stress