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More broadly, CSI and CSSEL had failed to install an effective governance framework that effectively monitored or discussed the risks presented by Archegos portfolio. When Archegos defaulted in March 2021, these Credit Suisse entities suffered US$5.1 billion in losses from their combined exposures to the Archegos portfolio. The PRA also ruled that the firms had failed to assess and respond to the risks presented by their exposures relating to Archegos’ portfolio. It noted that risk oversight was inadequate in the UK for equity total return swap positions that CS entered into with Archegos that were booked remotely into the UK firms via other CS entities. The regulator found that the Credit Suisse entities had neglected to put an effective risk mitigation strategy in place for Archegos’s portfolio and failed to escalate the issue and take appropriate action as this risk exposure increased. Specifically, the firms had failed to promote a culture within the investment bank which balanced risk considerations effectively against commercial reward. In its ruling, the PRA indicates that Credit Suisse breached rules 2, 3, 5 and 6 of the PRA Rulebook. The PRA ruled that the firms had also failed to learn lessons from past experiences and to address concerns that the regulator had raised previously. These Credit Suisse entities had failed to address risks arising from Archegos’ investment portfolio and, in providing prime services to Archegos, they had failed to respond effectively when limit breaches were exceeded. The PRA identified failings at CSI and CSSEL that it ruled to be symptomatic of an unsound risk culture that failed to balance risk considerations against commercial reward. The Federal Reserve Board had previously applied fines of US$268.5 million on Credit Suisse entities in the US that had been found to be in breach relating to their engagement with Archegos. These financial penalties have been imposed on Credit Suisse International (CSI) and Credit Suisse Securities (Europe) Ltd (CSSEL) following a coordinated global resolution that involved judgements by the Swiss Financial Supervisory Authority (FINMA) and the US Federal Reserve Board.Ĭredit Suisse was acquired by UBS Group on 12 March 2023. The UK regulator indicates that this is the highest penalty that it has applied and the only time that a PRA enforcement investigation has confirmed breaches of four PRA fundamental rules. The Prudential Regulation Authority has imposed a fine of £87 million on Swiss bank Credit Suisse for risk management failures relating to its dealings with Archegos Capital Management, the limited partnership family office managed by Bill Hwang that collapsed in March 2021. Credit Suisse fined £87 million for Archegos failings

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