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

UBS has been ordered to pay US$388 million to British and US regulators over Credit Suisse’s dealings with private investment firm Archegos Capital Management, the Swiss bank said on Monday (Jul 24).

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

Under the agreement, UBS is to pay the US Federal Reserve US$268.5 million and the UK’s Prudential Regulation Authority £87 million (S$148.4 million).

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

Switzerland’s regulator FINMA does not have the power to fine financial institutions. REUTERS