Finma finds serious shortcomings in CS

Financial market regulator Finma has closed the case against Credit Suisse over issues with Greensill funds. As it announced Tuesday, it said the bank had “serious” breaches of regulatory obligations and was taking corrective action.

In the future, the bank will need to periodically review the approximately 500 most important business relationships at the board member level, particularly for counterparty risks. In addition, CS must record the responsibilities of its approximately 600 most senior employees in a statement of responsibility. Additionally, according to the information, Finma filed a so-called enforcement suit against four former CS employees whose names were not disclosed.

Anglo-Australian supply chain financier Greensill Capital faced challenges in the spring of 2021. As a result, CS had to liquidate four funds worth ten billion francs. Shortly after Greensill, CS also suffered the debacle surrounding asset manager Archegos, forcing the bank to write off another five billion. Billion-dollar bankruptcies hit other banks as well, but CS’s job became much more difficult. The $2 billion bankruptcy is also emblematic of the inadequate risk culture within the bank. (SDA/sfa)

Source :Blick