Credit Suss Fined £87M By BoE For Serious Risk Management Failures Linked To Archegos…

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Credit Suisse has been fined a record £87m by the Bank of England for “extremely serious” risk management failures.

The bank, which was subject to a forced takeover by Swiss rival UBS earlier this year, fell “well below” regulatory standards in its dealings with private investment firm Archegos Capital Management, officials said.

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Credit Suisse lost $5.1bn (£4bn) when the hedge fund defaulted in March 2021.

Critics said the bank should have been more aware of the risks from Archegos as it borrowed huge sums to build up large and risky positions in a handful of companies.

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The episode caused “significant financial and reputational damage” to Credit Suisse, officials said, while other lenders were also impacted – including UBS, which lost $861m (£671m).

 

Full article – https://news.sky.com/story/credit-suisse-handed-record-16387m-fine-by-bank-of-england-12926815