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The Federal Reserve (Fed) has lifted the enforcement measures imposed in 2023 against Swiss bank Credit Suisse, which was acquired by UBS.
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The measures had been taken for serious organisational deficiencies within Credit Suisse in connection with the collapse of the US hedge fund Archegos, the US central bank said in a statement on Friday.
In the summer of 2023, the Fed had imposed a penalty of $268.5 million (CHF211.1 million at today’s exchange rate) on Credit Suisse and its parent company UBS. The Fed had also required Credit Suisse and UBS to make substantial improvements in the areas of supervision, liquidity and data management, among others.
+ Where did it all go wrong for Credit Suisse?
The measures taken at the time by the Fed had been agreed with other financial supervisory authorities. The British Prudential Regulation Authority had imposed a fine of £87 million (CHF91.4 million at today’s exchange rate). For its part, the Swiss Financial Market Supervisory Authority (FINMA) had requested Credit Suisse to take “corrective measures” as a result of the serious shortcomings it had found.
The collapse of Archegos in March 2021 had been one of the main causes of Credit Suisse’s crisis. The deal had cost the bank, then Switzerland’s second largest, a total of around CHF5 billion. The demise of the hedge fund led by US investor Bill Hwang had affected a number of financial institutions, but Credit Suisse had been by far the hardest hit.
+ Former head of Archegos fund found guilty of fraud
Adapted from Italian by AI/ts
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