The US Federal Reserve Board and the Bank of England's Prudential Regulation Authority have fined Swiss bank Credit Suisse over $387 million for risk management violations, the Bank of England said on Monday
MOSCOW (Pakistan Point News / Sputnik - 25th July, 2023) The US Federal Reserve Board and the Bank of England's Prudential Regulation Authority have fined Swiss bank Credit Suisse over $387 million for risk management violations, the Bank of England said on Monday.
"The Prudential Regulation Authority ('PRA') has fined Credit Suisse International ('CSI') and Credit Suisse Securities (Europe) Ltd ('CSSEL', together with CSI, the 'Firms') 87 million pounds ($111.4 million) for significant failures in risk management and governance ... The PRA action is part of a co-ordinated global resolution, incorporating action by the Swiss Financial Market Supervisory Authority ('FINMA') and the Federal Reserve Board, which provides for combined penalties in excess of $387.5 million being imposed by the PRA and Federal Reserve Board," the bank said in a statement.
This is the highest fine ever imposed by the PRA and the only time an investigation has found violations of the Bank of England's four core rules, the statement read, adding that violations were committed by Credit Suisse between January 1, 2020 and March 31, 2021.
The US Federal Reserve said, in turn, that the amount of the fine was $268.5 million.
In mid-March, Credit Suisse's share price plunged nearly 30%, sparking fears of a liquidity crunch. The incident followed the collapse of several US financial institutions, including Silicon Valley Bank. Later in the month, the Swiss National Bank announced the acquisition of Credit Suisse by UBS.
