UBS Fined for Credit Suisse Archegos Saga
UBS Group AG has agreed to pay a $269 million fine to the U.S. Department of Justice (DOJ) for its role in the Credit Suisse Archegos saga. The fine is the largest ever imposed on a Swiss bank by the DOJ.
Background of the Credit Suisse Archegos Saga
The Credit Suisse Archegos saga began in March 2021 when Archegos Capital Management, a family office run by Bill Hwang, defaulted on margin calls from several banks. Credit Suisse was one of the banks that had lent money to Archegos and was left with a $4.7 billion loss when the firm defaulted.
The losses incurred by Credit Suisse were so large that the bank had to raise $4 billion in capital to cover them. UBS was one of the banks that provided the capital to Credit Suisse.
UBS Fined for Role in Credit Suisse Archegos Saga
The DOJ has now fined UBS for its role in the Credit Suisse Archegos saga. The fine is the largest ever imposed on a Swiss bank by the DOJ.
UBS has agreed to pay the fine without admitting or denying any wrongdoing. The bank said in a statement that it had cooperated fully with the DOJ’s investigation and that it had taken steps to strengthen its risk management and compliance processes.
UBS to Pay $269 Million Fine
UBS has agreed to pay a $269 million fine to the DOJ for its role in the Credit Suisse Archegos saga. The fine is the largest ever imposed on a Swiss bank by the DOJ.
The fine is part of a deferred prosecution agreement between UBS and the DOJ. Under the agreement, UBS will pay the fine and will also be required to implement certain compliance measures.
UBS to Implement Compliance Measures
As part of the deferred prosecution agreement, UBS will be required to implement certain compliance measures. These measures include the appointment of an independent monitor to review the bank’s compliance with the agreement and the implementation of a compliance program to ensure that the bank is in compliance with applicable laws and regulations.
The agreement also requires UBS to cooperate with the DOJ in any future investigations related to the Credit Suisse Archegos saga.
UBS Strengthens Risk Management and Compliance Processes
UBS has said that it has taken steps to strengthen its risk management and compliance processes. The bank has implemented a new risk management framework and has appointed a Chief Risk Officer to oversee the implementation of the framework.
The bank has also implemented a new compliance program and has appointed a Chief Compliance Officer to oversee the implementation of the program.
Conclusion
UBS has agreed to pay a $269 million fine to the DOJ for its role in the Credit Suisse Archegos saga. The fine is the largest ever imposed on a Swiss bank by the DOJ. UBS has also agreed to implement certain compliance measures and has taken steps to strengthen its risk management and compliance processes.