UBS to pay hundreds of millions of dollars in Archegos Capital case – Kommersant

UBS will inherit a several hundred million dollar fine from Credit Suisse in the case of the Archegos Capital investment fund that collapsed in 2021, reports Financial Timesciting their own sources.

According to the publication, the bank has already asked the Swiss Finma, the US Federal Reserve and the UK Prudential Review Authority (PRA) to jointly publish their findings from the investigations and then jointly announce penalties. UBS management wants the fines to be announced before the end of July. However, according to sources, the investigation could be delayed due to mergers UBS and Credit Suisse in March this year.

According to the newspaper, the US Federal Reserve fine could be about $300 million, and the British regulator – about £100 million. However, the amount of fines may be reduced as a result of negotiations between the bank and regulators. At the same time, Credit Suisse management set aside only $35 million to settle possible claims in this case, FT sources say.

collapse Archegos Capital in March 2021 resulted in a loss of $10 billion for its brokers, which included Credit Suisse, UBS, Nomura, Morgan Stanley, Goldman Sachs and Deutsche Bank. More than half of this amount (about $5.5 billion) came from Credit Suisse. While the loss of UBS from cooperation with Archegos amounted to $861 million.

Read more about the merger of UBS and Credit Suisse – in the material “Kommersant” “According to the Zurich account”.

Kirill Sarkhanyants