Credit Suisse, Burned By Archegos And Greensill Scandals, Shifts Focus To Wealth Management In Overhaul (2024)

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Credit Suisse, Burned By Archegos And Greensill Scandals, Shifts Focus To Wealth Management In Overhaul (2024)

FAQs

What happened with Archegos and Credit Suisse? ›

London | Credit Suisse has been fined $US388 million ($575 million) by US and British regulators for “significant failures in risk management and governance” related to the collapse of Archegos Capital, which caused a $US5. 5 billion trading loss and helped bring about the demise of the Swiss lender.

What happened with Greensill and Credit Suisse? ›

The Swiss financial regulator has ordered Credit Suisse to overhaul its risk management after finding the bank “seriously breached its supervisory obligations” in its dealings with the collapsed Greensill Capital.

What happened at the Credit Suisse scandal? ›

Credit Suisse was heavily invested in the firm and had to close four connected funds, in which around $10 billion had been invested. Swiss financial regulator FINMA concluded that the bank "seriously breached its supervisory obligations" and ordered the bank to implement additional reporting and safeguards.

What are the lessons learned from Archegos? ›

The Archegos collapse offers several lessons for financial professionals: Commitment to Transparency: Financial professionals must prioritize transparency in all dealings. This means not only adhering to regulatory requirements but also proactively disclosing potential risks and conflicts of interest to stakeholders.

What led to the downfall of Credit Suisse? ›

Shakeups of Credit Suisse's board, particularly in the aftermath of the Greensill and Archegos scandals, led to a loss of institutional knowledge at the lender. This left Credit Suisse's board unable to find long-term solutions to its shortcomings, leading to a “poor risk culture” inside the institution.

What happened to Credit Suisse in simple terms? ›

Following several years of scandals, Switzerland's Credit Suisse bank collapsed in March 2023. It was purchased by Swiss rival UBS for about $3.3 billion in a deal approved by Swiss regulators without shareholder approval.

Why does Credit Suisse have such a bad reputation? ›

Credit Suisse's failings included a criminal conviction for allowing drug dealers to launder money in Bulgaria, entanglement in a Mozambique corruption case, a spying scandal involving a former employee and an executive and a massive leak of client data to the media.

Why is Credit Suisse suffering? ›

The company has been plagued by a series of missteps and compliance failures in recent years that cost it billions and led to several overhauls of top management. And over the past decade, the Swiss bank has been hit with fines and penalties related to tax evasion, misplaced bets and other issues.

What are the ethical issues with Credit Suisse? ›

They unearthed evidence Credit Suisse accounts had been used by clients involved in torture, drug trafficking, money laundering, corruption and other serious crimes, suggesting widespread failures of due diligence by the bank.

What was Archegos AUM? ›

Formerly of Tiger Cub fund Tiger Asia Management, Hwang created the Archegos family office in 2013, with $10 billion under management as of 2020. Its name is Greek for "leader."

What are the values and lessons that Dre learned from Mr Han? ›

Mr. Han taught Dre that the true power comes from mastering self, not others. “Don't fear the man who knows 1,000 techniques. But fear the man that has practiced one technique 1,000 times.”

What happened in Archegos' collapse? ›

When Archegos was unable to repay the banks, it prompted a mass sell-off of stocks and the fund collapsed. Hwang's deputy at Archegos and co-defendant, Patrick Halligan, was also found guilty on the three counts he faced.

What will happen to Credit Suisse after merger? ›

As part of the deal, UBS will wind down Credit Suisse's investment bank. Credit Suisse's largest shareholders, including SNB (9.9% stake) and sovereign wealth funds Qatar Investment Authority (6.8% stake) and Norges Bank Investment Management, are expected to take significant losses from the acquisition.

What would happen to Credit Suisse shareholders? ›

Existing shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held. Unusually, the merger will not be subject to shareholder approval and is expected to complete by the end of 2023. As part of this process, Credit Suisse shares will be delisted from the Swiss and New York stock exchanges.

How much did the UBS lose on Archegos? ›

She called him “manipulative” and a “very, very convincing liar” in her opening statement. Fairbanks' testimony, however, threw the accusations of lying back at Hwang and Archegos. “All the information they shared with us was lies,” he said, noting that UBS lost $860 million trading with Archegos.

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