The Swiss voice in the world since 1935

UBS agrees to pay $388 million over Credit Suisse’s Archegos failings

UBS and Credit Suisse logos
The settlement is the first of several that UBS could have to pay after taking over rival Credit Suisse © Keystone / Ennio Leanza

UBS has been ordered to pay $388 million (CHF336 million) to British and US regulators over Credit Suisse’s dealings with private investment firm Archegos Capital Management, the Swiss bank said on Monday.

The settlement is the first of several that UBS could have to pay after it last month closed its takeover of rival Credit Suisse, which was involved in a number of legal battles.

+ Where did it all go wrong for Credit Suisse?

Under the agreement, UBS is to pay the US Federal Reserve $268.5 million and the UK’s Prudential Regulation Authority £87 million (CHF97 million).

Reports ahead of time had suggested the US regulator would impose a penalty of up to $300 million and the UK regulator would fine UBS up to £100 million over the bank’s dealings with bankrupt US hedge fund Archegos.

UBS on Monday said it would tighten up operational and risk management discipline at Credit Suisse after it completed its takeover of its smaller rival.

The bank also said it intended to resolve Credit Suisse’s remaining litigation in “the best interest of its stakeholders, including investors, clients and employees”.

UBS said in May, just before completing the deal, that it was setting aside $4 billion for potential lawsuits connected to its Credit Suisse takeover.

More

Compensation culture

Although unable to levy fines, Swiss financial regulator FINMA has ordered corrective measures in the wake of the Archegos affair, including changes to the bank’s compensation culture that take more account of risk appetite.

“For employees with particular risk exposure, a control function must assess and record the risks taken before the bonus is determined,” FINMA said in a statementExternal link.

“UBS already has corresponding rules in place, which FINMA is now ordering to be legally binding,” it added.

The regulator said it has also opened enforcement proceedings against an unnamed former Credit Suisse banker linked to the affair.

More

Popular Stories

Most Discussed

News

Tourists spent more last year

More

Tourist spending in Switzerland grew in 2024

This content was published on Visitors to Switzerland spent CHF19.6 billion ($23.9 billion) last year, a 2.2% rise compared to the previous year, the Federal Statistical Office (FSO) said on Monday.

Read more: Tourist spending in Switzerland grew in 2024
Swiss population remains in a spending mood despite crises

More

Swiss consumer sentiment remains positive despite crises

This content was published on Despite the current tense economic situation, Swiss consumer sentiment remains positive. The Swiss spent more money in May than the previous year, particularly on restaurant visits and leisure activities, as shown by the latest figures released by PostFinance.

Read more: Swiss consumer sentiment remains positive despite crises
Bear kills four sheep near Scuol GR

More

Bear kills sheep in southeastern Switzerland

This content was published on A bear killed four sheep in the Lower Engadine region near Scuol, canton Graubünden last week. This was the first bear attack on livestock in the region in four years.

Read more: Bear kills sheep in southeastern Switzerland
Economists lower their expectations for economic growth in 2026

More

Swiss economists lower growth forecast for 2026

This content was published on Experts believe that economic development in Switzerland will be weaker in 2026 than three months ago. They have also lowered their expectations for the current year.

Read more: Swiss economists lower growth forecast for 2026
Fewer and fewer people are attending religious events

More

Survey: more Swiss reject organised religion

This content was published on Fewer people in Switzerland have a religious affiliation and the proportion who practice their religion regularly is steadily declining, a survey finds.

Read more: Survey: more Swiss reject organised religion
Trees cool cities better than previously assumed

More

Study: trees have major cooling effect even in extreme heat

This content was published on Plane trees in cities have an important cooling effect even in extreme heat, according to a new study by the Swiss Federal Institute for Forest, Snow and Landscape Research (WSL). 

Read more: Study: trees have major cooling effect even in extreme heat
The panorama of the Battle of Murten is digitised

More

EPFL launches digitised version of Battle of Murten panorama

This content was published on To mark the anniversary of the Battle of Murten on 22 June 1476, the Federal Institute of Technology Lausanne (EPFL) has launched a website that offers the public an immersive experience of the huge panorama painting of the historic battle. 

Read more: EPFL launches digitised version of Battle of Murten panorama

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR