# UBS faces big penalty over Credit Suisse’s Archegos failings -FT Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UBS faces big penalty over Credit Suisse's Archegos Meta Description: UBS Group AG faces hefty fines over mishandling of Archegos Capital, as UK, Swiss and U.S. regulators conclude investigations. Stay tuned for penalties URL: https://financedigest.com/ubs-faces-big-penalty-over-credit-suisses-archegos-failings-fthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-19t213348z1lynxmpej5i0mgrtroptp4ubs-credit-suisse-1736813861431-compressed.jpg) # UBS faces big penalty over Credit Suisse’s Archegos failings -FT (Reuters) – UBS Group AG faces hundreds of millions of dollars in penalties over Credit Suisse’s mishandling of Archegos Capital, after UK, Swiss and U.S. regulators completed their investigations, Financial Times reported on Monday. UBS has asked the U.S. Federal Reserve, the Swiss Financial [Market Supervisory Authority and UK’s Prudential Regulation Authority to publish their findings and announce any penalties jointly](https://www.financedigest.com/the-artificial-joints-market-to-stick-around-based-on-organic-expansion.html "The Artificial Joints Market to stick around based on organic expansion") at the end of July, FT reported. [Britain’s Prudential Regulation Authority could impose a fine of up to 100 million pounds](https://www.financedigest.com/how-britains-pension-scheme-hedge-became-a-trillion-pound-gamble.html "How Britain’s pension scheme hedge became a trillion pound gamble") ($127.81 million), while the U.S. Federal Reserve could impose a penalty of up to $300 million, the newspaper reported, adding that [Credit Suisse](https://www.financedigest.com/credit-suisse-group-rating-downgraded-by-sp.html "Credit Suisse Group rating downgraded by S&P") had set aside just $35 million for potential fines. The Swiss Financial [Market Supervisory Authority does not have the power](https://www.financedigest.com/analysis-energy-market-turmoil-shakes-europes-green-power-plan.html "Analysis: Energy market turmoil shakes Europe’s green power plan") to fine financial institutions, president Marlene Amstad said in May. Archegos’ collapse stemmed from its founder Hwang’s aggressive use of total return swaps, a type of financial contract, to boost the effective size of his [market positions](https://www.financedigest.com/sales-forecasts-of-automotive-parts-remanufacturing-market-reveal-positive-outlook-through-2026.html "Sales Forecasts of Automotive Parts Remanufacturing Market Reveal Positive Outlook Through 2026"). The New York-based firm’s demise caused billions of dollars in losses for Credit Suisse. UBS completed its emergency takeover of embattled rival Credit Suisse last week, forging a Swiss [banking and wealth management giant with a $1.6 trillion balance](https://www.financedigest.com/top-ten-money-saving-apps-to-boost-your-bank-balance.html "Top ten money-saving apps to boost your bank balance") sheet. It set aside $4 [billion for potential lawsuits on the Credit Suisse deal](https://www.financedigest.com/bankers-bet-billions-on-new-wave-of-debt-for-nature-deals.html "Bankers bet billions on new wave of debt-for-nature deals") in May, according to a presentation. The U.S. Fed Reserve declined to comment, while UBS, the [Swiss Financial Market](https://www.financedigest.com/swiss-bank-ubp-returns-to-chinese-markets.html "Swiss bank UBP returns to Chinese markets") Supervisory Authority, and the Prudential Regulatory Authority did not immediately respond to requests for comment. ($1 = 0.7824 pounds) (Reporting by Chandni Shah in Bengaluru; Editing by Lisa Shumaker and Jonathan Oatis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---