Credit Suisse is set to pay US and UK regulators a combined $388m to settle the long-standing probe into its relationship with family office, Archegos Capital, as the Swiss bank integrates into cross-town rival UBS.
UBS and Credit Suisse have agreed to pay the US Federal Reserve $269m and the UK's Prudential Regulation Authority £87m in fines. UBS is looking to settle a series of outstanding legal and reputational issues as it acquires Credit Suisse after years of crises.
Credit Suisse's ties to Archegos, which collapsed in March 2021 after a series of highly leveraged bets in technology stocks, cost Credit Suisse $5.5bn, a far bigger sum than many of its rivals also caught up in the scandal.
In a statement, the banks said they had announced a "resolution" to Credit Suisse's ties to Archegos.
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The PRA said it has imposed a record fine of £87m on Credit Suisse for "significant failures in risk management and governance between 1 January 2020 and 31 March 2021".
The Fed said it requires Credit Suisse to improve its counterparty risk management practices and other failures in its risk management programmes.
UBS acquired Credit Suisse in March after years of successive crises, including Archegos, its ties to collapsed supply chain finance firm Greensill Capital, and a spying scandal on former employees.
The Swiss government pushed through the deal over the course of a weekend after Credit Suisse's largest investor, the Saudi National Bank, said it would not inject more capital into the bank. The comments sent Credit Suisse's stock plunging amid broader concerns over the banking sector promoted by the sudden collapse of Silicon Valley Bank.
The tie-up is expected to lead to significant job losses as UBS integrates Credit Suisse into its business.
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