UBS has been ordered to pay $388 million (CHF336 million) to British and US regulators over Credit Suisse’s dealings with private investment firm Archegos Capital Management, the Swiss bank said on Monday.
This content was published on
2 minutes
Reuters/ts
Português
pt
UBS concorda em pagar US$ 388 milhões por falhas na Archegos do Credit Suisse
The settlement is the first of several that UBS could have to pay after it last month closed its takeover of rival Credit Suisse, which was involved in a number of legal battles.
Under the agreement, UBS is to pay the US Federal Reserve $268.5 million and the UK’s Prudential Regulation Authority £87 million (CHF97 million).
Reports ahead of time had suggested the US regulator would impose a penalty of up to $300 million and the UK regulator would fine UBS up to £100 million over the bank’s dealings with bankrupt US hedge fund Archegos.
UBS on Monday said it would tighten up operational and risk management discipline at Credit Suisse after it completed its takeover of its smaller rival.
The bank also said it intended to resolve Credit Suisse’s remaining litigation in “the best interest of its stakeholders, including investors, clients and employees”.
UBS said in May, just before completing the deal, that it was setting aside $4 billion for potential lawsuits connected to its Credit Suisse takeover.
More
More
Let’s Talk: What next after the Credit Suisse debacle?
This content was published on
The Let’s Talk debate webcast examines the implications of the Credit Suisse failure for Switzerland and its financial centre.
Although unable to levy fines, Swiss financial regulator FINMA has ordered corrective measures in the wake of the Archegos affair, including changes to the bank’s compensation culture that take more account of risk appetite.
“For employees with particular risk exposure, a control function must assess and record the risks taken before the bonus is determined,” FINMA said in a statementExternal link.
“UBS already has corresponding rules in place, which FINMA is now ordering to be legally binding,” it added.
The regulator said it has also opened enforcement proceedings against an unnamed former Credit Suisse banker linked to the affair.
More
More
Credit Suisse agrees to CHF3bn takeover by rival Swiss bank UBS
This content was published on
Ailing Swiss bank Credit Suisse will be taken over by its rival UBS after a frantic last-ditch deal to prevent a catastrophic banking collapse.
What do you think Switzerland’s Alain Berset can bring to the Council of Europe?
The former interior minister is to become the first Swiss Secretary General of the Council of Europe – which issues should his five-year term focus on?
Bodycams: essential for good law enforcement, or a privacy risk?
Did you ever come across bodycams in your place of residence and if so, how do you think the use of bodycams alter the relationship between the public and (transport) police?
What can be done to protect biodiversity in your country?
Swiss voters are set to decide on a people’s initiative calling for better protection of ecosystems in the country. Have your say on the September 22 vote.
Sudan: Swiss among mediators calling for continuous flow of aid
This content was published on
The seven parties, including Switzerland, who led ten days of talks on Sudan in the Geneva region, are calling for the new flow of aid to “continue and accelerate”.
Coo d’état: Basel struggles to enforce pigeon-feeding ban
This content was published on
Police in the Swiss canton of Basel City have issued only eight fines since the ban on pigeon feeding came into force in July 2020.
Nestlé CEO Schneider was ousted, paving way for veteran Freixe, sources say
This content was published on
Nestlé CEO Mark Schneider was ousted in a sudden move by the world’s biggest foodmaker as a result of the group’s underperformance.
This content was published on
Two people died in a paragliding accident on the summit of the Breithorn in Valais, southwestern Switzerland, on Wednesday.
Two-thirds of terror suspects in Western Europe are teenagers
This content was published on
Terrorists have become younger. This can also be seen in Switzerland, said terror expert Peter Neumann in the "Neue Zürcher Zeitung" on Friday. The expert describes a new type of self-radicalized young attacker, which he calls Tiktok terrorists.
Swiss Federal Railways wants to replace Russian positioning system by end of 2025
This content was published on
The Swiss Federal Railways (SBB) would like to replace the positioning systems of the Russian company Infotrans by the end of 2025. However, this will cost CHF 900,000 more than expected, as SBB confirmed to the Keystone-SDA news agency.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
FINMA probes Credit Suisse over Archegos blowout
This content was published on
Switzerland’s Financial Market Supervisory Authority (FINMA) on Thursday opened enforcement proceedings against the bank over the Archegos losses. The regulator is investigating whether there were deficiencies in risk management. FINMA has appointed an investigator to probe the matter at the bank. It is also exchanging information with counterparts in Britain and the United States. The…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.