World News | UBS Fined Nearly USD 400 Million Related to Credit Suisse's Relationship with Failed Fund Archegos

New York, Jul 25 (AP) Swiss banking giant UBS will pay nearly USD 400 million in fines to US, Swiss and UK banking authorities for the management failures of Credit Suisse, which UBS bought in June, related to how Credit Suisse handled its relationship with collapsed hedge fund Archegos Capital Management.

Archegos failed in 2021, costing Wall Street banks billions of dollars in losses, and Credit Suisse took the brunt of the losses. The Swiss bank took more than USD 5 billion in losses from Archegos' failure, which over a period of two years, ultimately led to the fire sale of Credit Suisse to UBS in June.

Also Read | Pakistan Economics Woes Continue As Gas Prices Likely to Rise by 45% Amid IMF’s Demand.

Credit Suisse management was found to give Archegos special treatment through its prime brokerage division, which caused the bank to take on undue risk when Archegos purchased a highly concentrated position in ViacomCBS. The firm's manager, Bill Hwang, is scheduled to face fraud charges for the collapse of Archegos in October.

Credit Suisse failed to “adequately manage the risk posed by Archegos despite repeated warnings”, the Federal Reserve said in a statement on Monday.

Also Read | Pakistan Floods: 133 Killed, 215 Injured As Rain Continues to Wreak Havoc Country.

The announcement was made by the Fed alongside the Bank of England and the Swiss Financial Market Supervisory Authority. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)