UBS Group AG faces hundreds of millions of dollars in penalties following investigations by several regulators into Credit Suisse’s dealings with Archegos Capital, the Financial Times reported.
(Bloomberg) — UBS Group AG faces hundreds of millions of dollars in penalties following investigations by several regulators into Credit Suisse’s dealings with Archegos Capital, the Financial Times reported.
The bank had asked Switzerland’s financial regulator Finma, the US Federal Reserve and the UK’s Prudential Regulation Authority to publish their findings and announce any penalties jointly at the end of next month, the newspaper said, citing four people briefed on the plans.
Unlike other banks working with the family office that managed Bill Hwang’s fortune, Credit Suisse was slow to unwind its positions and was caught with billions of dollars in losses. UBS suffered a much smaller loss.
The Fed’s fine over Archegos may be as high as $300 million, while the PRA could slap a penalty of up to £100 million ($128 million), the FT wrote, citing one person, while adding that the final number could be lower. Finma doesn’t have the authority to impose fines.
UBS, Credit Suisse, Finma, the Fed and the PRA all declined to comment to the FT.
Read More: UBS Inherits Legacy of Legal Headaches From Credit Suisse (2)
UBS has inherited a long list of unresolved cases following the completion of its emergency takeover of Credit Suisse. They span a criminal conviction for facilitating a Bulgarian cocaine trafficker’s money laundering to a half-billion dollar settlement in a bribery scandal related to a tuna fishing fleet in Mozambique.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.