Credit Suisse added to UK financial regulator’s watchlist on risk concerns
THE UK’s financial regulator has added Credit Suisse Group to a watchlist over concerns that it hasn’t sufficiently addressed risky culture as the lender struggles to draw a line under a series of scandals and turbulence.
The Financial Conduct Authority (FCA) told Credit Suisse last month that it was adding the bank’s UK operations and international unit to a list of firms warranting close monitoring after a series of scandals, said a sourcer. The regulator cited concern over its risk controls, governance and culture.
Officials have asked the firm’s top management to offer evidence of the steps it would take to make improvements going forward, the source added.
Dominik von Arx, a spokesperson for the bank, said in an e-mailed statement: “We do not comment on our discussions with regulators, nor would it be appropriate for us to do so. As we have summarised before, we are now well advanced in executing the plan to strengthen our businesses and our risk culture.”
The Financial Times reported the news earlier, citing a letter to the bank’s senior management from the regulator. Only 20 or so firms are typically on the list at any one point, the FT said.
The FCA declined to comment.
Over the past two years, Credit Suisse has seen a US$5.5 billion hit from Archegos, the collapse of partner Greensill Capital and a string of profit warnings that eroded investor confidence, weakened key businesses and prompted an exodus of talent.
As part of a push to cut costs after warning of a second-quarter loss, Bloomberg reported last week that Credit Suisse is considering job cuts. The reduction in headcount may come as the bank preps an update to investors on risk, compliance, technology and wealth management on Jun 28. BLOOMBERG
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