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The US Federal Reserve Board on Monday introduced levying of a $268.5 million penalty towards UBS, over misconduct by Credit Suisse that dates again to 2021. Earlier in March 2023, the UBS Group acquired Credit Suisse. The United States central financial institution mentioned the financial institution’s misconduct concerned Credit Suisse’s unsafe counterparty credit score threat administration practices with Archegos Capital, its former counterparty. Accordingly, a consent order has been reached on this regard, the US Fed Board mentioned.

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UBS Agrees On $268.5 Million Fine

According to the US Fed’s announcement, the danger administration deficiency occured on Credit Suisse’s half as a result of default of Archegos in 2021. Credit Suisse had then suffered roughly $5.5 billion in losses because of the default, an announcement from the US Federal Reserve said. Yet, Credit Suisse didn’t adequately handle the danger posed by Archegos regardless of repeated warnings, the central financial institution’s Board defined. An investigation into Credit Suisse by the Federal Reserve Bank of New York recognized longstanding deficiencies within the U.S. operations’ threat
administration, the assertion mentioned.

“The Board is requiring Credit Suisse to improve counterparty credit risk management practices and to address additional longstanding deficiencies in other risk management programs at Credit Suisse’s U.S. operations.”

Previously, regulators in Switzerland and England have taken related actions towards the now-acquired financial institution. The Swiss Financial Market Supervisory Authority and the Bank of England’s Prudential Regulation Authority have collectively levied a nice of roughly $387 million on the financial institution. The $5.5 billion Archegos default in 2021 compelled Credit Suisse to boost $1.9 billion.

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Anvesh studies main crypto updates round regulation, lawsuits and buying and selling developments. Published round 1,000 articles and relying on crypto and net 3.0. He is presently primarily based in Hyderabad, India. Reach out to him at anvesh@coingape.com or twitter.com/BitcoinReddy

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