Credit Suisse on FCA naughty step and in for stricter supervision
The U.K.'s financial regulator put Credit Suisse on its watch list for stricter supervision.
- According to the FT newspaper, citing a letter sent in May, The Financial Conduct Authority moved last month to put the troubled Swiss bank on its watch list over concerns Credit Suisse hadn't moved the needle far enough on improving its culture, governance and risk measures,
- «Financial Times» https://www.ft.com/content/442f0e26-05c7-4464-8b85-52af3f14199e report (behind paywall)
- The FT report said.
- The letter sought evidence of new moves to prevent misconduct, including dealing with «persistent» cultural issues,
- Being added to the watch list signals serious concerns as only around 20 institutions are usually on the list, out of around 60,000 under regulation, the report said, citing a person familiar with how the list operates.
- Credit Suisse told the «Financial Times» in a statement that it doesn't comment on its talks with regulators but was «well advanced» on its plan to strengthen its risk culture.
- The twin debacles surrounding the bankruptcy of Archegos and the closure of Credit Suisse's Greensill funds continue to haunt the bank.
- Archegos Capital Management was a family office managing Bill Hwang's personal assets; the private investment firm collapsed amid fraud and market manipulation allegations. Credit Suisse lost around $5 billion in its dealings with Archegos.
- Greensill Capital and Credit Suisse ran $10 billion in supply chain finance funds together – Greensill would make supply-chain loans to companies and then create notes based on the loans; the notes were marketed as safe, insured investments.
- But after the collapse of Greensill amid Covid-related market disruptions, allegations emerged of fraudulent dealings; Credit Suisse also faced allegations of conflict of interest in its dealings with the company.
- Foreign authorities have launched criminal investigations into Greensill and Archegos, while the Swiss Financial Market Supervisory Authority (Finma) has opened inquiries.
- Purported class-action lawsuits have also been filed in the U.S. related to Archegos-Greensill. U.S. plaintiffs have also targeted Credit Suisse management and business relationships with Russian oligarchs.
Meet the team of industry experts behind ComsureFind out more
Keep up to date with the very latest news from ComsureFind out more
View our latest imagery from our news and workFind out more
Think we can help you and your business? Chat to us todayGet In Touch
As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email firstname.lastname@example.org.