WASHINGTON: The Swiss banking large UBS was fined on Monday a complete of $387 million for misconduct by its recently-acquired subsidiary, Credit score Suisse, introduced the US Federal Reserve.
Swiss regulators pushed UBS to take over its former rival Credit score Suisse earlier this yr amid a banking disaster spurred by the collapse of US regional lender Silicon Valley Financial institution.
In an announcement, the Fed introduced that UBS was fined a complete of $387 million by the Fed and the Financial institution of England over Credit score Suisse’s failure “to adequately handle” the danger posed by the US household funding fund Archegos, regardless of repeated warnings.
The dramatic implosion of the household hedge fund run by Invoice Hwang price Credit score Suisse round $5.5 billion in losses, AFP reported.
The Fed mentioned “the misconduct concerned Credit score Suisse’s unsafe and unsound counterparty credit score danger administration practices” with Archegos, and introduced a consent order and a high quality for UBS value $268.5 million.
The Financial institution of England’s Prudential Regulation Authority would even be fining Credit score Suisse’s new proprietor, the Fed introduced, including that the sum complete of fines levied by the 2 regulators could be roughly $387 million.
The motion in opposition to UBS is being taken along side the Swiss Monetary Market Supervisory Authority, the Fed mentioned.