Swiss regulator opens enforcement proceedings against Credit Suisse over Archegos

Swiss regulator opens enforcement proceedings against Credit Suisse over Archegos
Barbara Kollmeyer
·1 min read

The Swiss Financial Market Supervisory Authority (FINMA) said Thursday that it has "opened enforcement proceedings" against Credit Suisse , in connection with the bank's "significant losses" linked to U.S. hedge fund Archegos Capital Management. In a statement, FINMA said it will "investigate in particular possible shortcomings in risk management," appoint a third-party agent to investigate and continue to exchange information U.K. and U.S. authorities. FINMA said it has also opened proceedings against the bank over losses linked to collapsed supply-chain finance firm Greensill Capital. FINMA said in recent weeks it has ordered the bank to carry out various short-term measures, such as "organisational and risk-reducing measures and capital surcharges as well as reductions in or suspensions of variable remuneration components." The bank on Thursday reported its second straight quarterly loss of 252 million Swiss francs ($274 million), less than analysts expected, but said it expects a further 600 million Swiss franc loss from Archegos in the second quarter.