Credit Suisse could be fined by the Fed in the Archegos case

Posted Nov 28, 2022 1:47 PM

LONDON (Agefi-Dow Jones)–Credit Suisse has said it may pay a fine and take operational action to end the Federal Reserve’s (Fed) investigation into its involvement in the hedge fund’s collapse. Archegos Capital Management.

The Fed is seeking “a solution that includes financial sanctions and certain corrective measures,” the Swiss bank said. The solution under consideration is the subject of “ongoing dialogue” with the Fed and other regulators, it added in the prospectus relating to its capital increase, published on Friday.

Credit Suisse suffered a loss of more than $5 billion as a result of the collapse of Archegos, making it the main victim of an event that also affected banks such as Morgan Stanley, Nomura and UBS.

At the end of October, Credit Suisse announced a vast restructuring plan, including a capital increase of 4 billion Swiss francs (4.24 billion euros), the loss of 9,000 jobs worldwide by 2025 and disposals. of assets. The bank is also seeking to close its disputes with regulators and civil lawsuits.

-Margot Patrick, The Wall Street Journal

(French version Aurélie Henri) ed: VLV

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November 28, 2022 07:47 AM ET (12:47 GMT)

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