United States Fed Fines UBS $268.5 Million & UK PRA Fines UBS $119 Million for Misconduct by Credit Suisse for Credit Risks Management Practices with $120 Billion Archegos Family Office, Credit Suisse Incurred Losses of $5.5 Billion & Acquired by UBS in 2023 March for $3.3 Billion
24th July 2023 | Hong Kong
The United States Fed (Federal Reserve Board) has fined UBS $268.5 million and UK Prudential Regulation Authority (PRA) has fined UBS $119 million (GBP 89 million), for a total of $387.5 million for misconduct by Credit Suisse unsafe & unsound credit risks management practices with $120 billion Archegos family office. Credit Suisse incurred losses of $5.5 billion from Archegos family office, and was subsequently acquired by UBS in 2023 March for $3.3 billion (completed on 12/6/23). The United States Federal Reserve Board (Fed) and Swiss Financial Market Supervisory Authority (FINMA) have also imposed remedial requirements relating to credit, liquidity and non-financial risk management, as well as oversight of remedial efforts. Credit Suisse: “UBS will implement its operational and risk management discipline and its culture across the combined organization. It has already begun implementing its risk framework, including actions addressing these regulatory findings, across Credit Suisse. UBS intends to resolve Credit Suisse’s outstanding litigation and regulatory matters in the best interest of its stakeholders, including investors, clients and employees.” In 2021, Credit Suisse which suffered a loss of $5.5 billion from Archegos family office, released a full investigative report, detailing the relationship, built-up to losses and revenue from Archegos Family Office. Archegos Family Office, Korean-American Bill Hwang family office which operates like a hedge fund, had total exposure of $120 billion in March 2021, causing $10 billion of trading losses to the world’s largest banks including Credit Suisse, UBS, Nomura, MUFJ and Morgan Stanley. Read More: Credit Suisse Report on Archegos Family Office | Greensill Fund Managers Fired More info below.
” United States Fed Fines UBS $268.5 Million & UK PRA Fines UBS $119 Million for Misconduct by Credit Suisse for Credit Risks Management Practices with $120 Billion Archegos Family Office, Credit Suisse Incurred Losses of $5.5 Billion & Acquired by UBS in 2023 March for $3.3 Billion “
Archegos Family Office:
- UBS Faces Potential Fine of $327 Million from United States & UK Regulators for Credit Suisse Mishandling of Bill Hwang $120 Billion Archegos Family Office, UBS Requested US, UK & Switzerland Regulators to Publish Findings & Penalties in July 2023
- $120 Billion Archegos Family Office Insurer Argonaut Files Lawsuit to Avoid Potential Costs Incurred by Archegos, Separate Lawsuit Filed in 2022 by Former Archegos Managing Director Brendan Sullivan Against Archegos for $50 Million Loss of Compensation
- Goldman Sachs Increased Provisional Loss by $2.3 Billion for 2023 from Legal Proceedings Including Malaysia 1MDB, Archegos & Gender Bias
- United States SEC Enforcement Result 2022: Record $6.4 Billion Penalties & 760 Enforcement Actions, JP Morgan, Morgan Stanley, UBS, Credit Suisse, Barclays, Allianz, EY, Deloitte, Bill Hwang Archegos, Boeing CEO Mislead Public on 737 MAX Planes
- $120 Billion Family Office Archegos Bill Hwang Submits Court Filing to End United States SEC Lawsuit Citing Trades are Legal & Traded Like an Enthusiastic Investor, Criminal Trial Scheduled for 10th Oct 2023
- Credit Suisse Share Price Down 53.6% YTD with Market Capitalisation of $11.9 Billion, In Restructuring after $120 Billion Archegos Family Office, $10 Billion Greensill Funds & Senior Executives Departures
- Credit Suisse Reached $32.5 Million Settlement Lawsuit for Misleading Shareholders on Strong Risk Management, Including Collapsed $120 Billion Archegos Family Office & $10 Billion Greensill Funds
- United States Prosecutors Filing: Archegos Family Office Misled Banks on Liquidity & Portfolio Concentration 6 Months Before Collapsed in March 2021, $1.5 Billion Assets to $160 Billion Exposure
- Federal Reserve: Weak Practices in Banks with Exposure to $120 Billion Archegos Family Office
- Goldman Sachs & Morgan Stanley Sued for Archegos Family Office Insider Trading
- Credit Suisse Report: Archegos Family Office Had $120 Billion Total Exposure
- $20 Billion Archegos Leveraged on GSX Techedu – Founder Loses $14 Billion, Name Change to Gaotu on NYSE
- Credit Suisse, UBS, Nomura, MUFJ and Morgan Stanley Losses for Archegos Family Office Nears $10 Billion
- UBS Reports $861 Million Losses from Archegos Family Office, $4.2 Trillion AUM and $1.82 Billion Profit for Q1 2021
- Credit Suisse Raises $1.92 Billion in Capital, $5.5 billion Losses from Archegos Family Office
- Credit Suisse and Nomura in $6 Billion Hit by Bill Hwang Archegos Family Office
United States Fed Fines UBS $268.5 Million & UK PRA Fines UBS $119 Million for Misconduct by Credit Suisse for Credit Risks Management Practices with $120 Billion Archegos Family Office
- Federal Reserve Board announces a consent order and a $268.5 million fine with UBS Group AG, of Zurich, Switzerland, for misconduct by Credit Suisse, which UBS subsequently acquired in June 2023
United States Federal Reserve Board 24th July 2023 – The Federal Reserve Board on Monday announced a consent order and a $268.5 million fine with UBS Group AG, of Zurich, Switzerland, for misconduct by Credit Suisse, which UBS subsequently acquired in June 2023. The misconduct involved Credit Suisse’s unsafe and unsound counterparty credit risk management practices with its former counterparty, Archegos Capital Management LP.
In 2021, Credit Suisse suffered approximately $5.5 billion in losses because of the default of Archegos, an investment fund. During Credit Suisse’s relationship with Archegos, Credit Suisse failed to adequately manage the risk posed by Archegos despite repeated warnings. The Board is requiring Credit Suisse to improve counterparty credit risk management practices and to address additional longstanding deficiencies in other risk management programs at Credit Suisse’s U.S. operations.
The Board’s action is being taken in conjunction with actions by the Swiss Financial Market Supervisory Authority and the Bank of England’s Prudential Regulation Authority. The penalties announced by the Board and the Prudential Regulation Authority total approximately $387 million.
UBS Faces Potential Fine of $327 Million from United States & UK Regulators for Credit Suisse Mishandling of Bill Hwang $120 Billion Archegos Family Office, UBS Requested US, UK & Switzerland Regulators to Publish Findings & Penalties in July 2023
21st June 2023 – UBS is facing a potential fine of up to $327 million from United States & UK regulators for Credit Suisse mishandling of Bill Hwang’s $120 Billion Archegos family office, with UBS requesting US, UK & Switzerland regulators to publish findings & penalties in July 2023. The United States regulator is the Federal Reserve, United Kingdom regulatory is the Prudential Regulation Authority and Switzerland regulator is the Swiss Financial Market Supervisory Authority. The UK Prudential Regulation Authority can impose a fine of up to $127 million (GBP 100 million), and the Federal Reserve can impose a fine of up to $300 million. Swiss Financial Market Supervisory Authority does not have the authority to impose a fine on financial institutions. In 2022 September, Credit Suisse had reached a $32.5 million settlement shareholders’s lawsuit for misleading shareholders (United States District Court in Manhattan) on strong risk management, including exposure to collapsed $120 billion Archegos family office & $10 billion Greensill Funds. More info below.
Credit Suisse Reached $32.5 Million Settlement Lawsuit for Misleading Shareholders on Strong Risk Management, Including Collapsed $120 Billion Archegos Family Office & $10 Billion Greensill Funds
22nd September 2022 – Credit Suisse has reached a $32.5 million settlement shareholders’s lawsuit for misleading shareholders (United States District Court in Manhattan) on strong risk management, including exposure to collapsed $120 billion Archegos family office & $10 billion Greensill Funds. In December 2021, Credit Suisse fired 2 investment managers (Portfolio Manager & Head of Fixed Income) who were involved in the failed $10 billion Greenhill Fund. Credit Suisse was hit by the troubled Greensill $10 billion supply-chain financing fund, which was introduced as a safe investment product to many of its institutional clients including pension funds and sovereign wealth funds. In 2021, Credit Suisse which suffered a loss of $5.5 billion from Archegos Family Office, had released a full investigative report, detailing the relationship, built-up to losses and revenue from Archegos Family Office. Archegos Family Office, Korean-American Bill Hwang family office which operates like a hedge fund, had total exposure of $120 billion in March 2021, causing $10 billion of trading losses to the world’s largest banks including Credit Suisse, UBS, Nomura, MUFJ and Morgan Stanley. Read More: Credit Suisse Report on Archegos Family Office | Greensill Fund Managers Fired | See below for United States Charge Against Archegos Family Office
August 2022: United States Prosecutors Submitted 12 Pages Filing on Archegos Family Office
In August 2022, the United States prosecutors submitted a 12 pages filing on Archegos Family Office (Archegos Capital Management LP), the prosecutors has accused Archegos of misleading banks on Archegos liquidity and portfolio concentration 6 months before its collapse in March 2021, with total exposure growing to around $160 billion with only $1.5 billion in net asset. The next hearing is on Sept. 8 2022. The case is U.S. v. Hwang et al, U.S. District Court, Southern District of New York, No. 22-cr-00240. Earlier in April 2022, the United States Securities and Exchange Commission (SEC) has charged Sung Kook (Bill) Hwang, the owner of family office Archegos Capital Management, Chief Financial Officer (Patrick Halligan), Chief Risk Officer (Scott Becker) and Head Trader (William Tomita) for orchestrating a market manipulation fraudulent scheme from $1.5 billion asset value (March 2020) to $160 billion exposure (March 2021) that resulted in billions of dollars in losses. United States SEC: “From at least March 2020 to March 2021, Hwang purchased on margin billions of dollars of total return swaps. These security-based swaps allow investors to take on huge positions in equity securities of companies by posting limited funds up front. As alleged, Hwang frequently entered into certain of these swaps without any economic purpose other than to artificially and dramatically drive up the prices of the various companies’ securities, which induced other investors to purchase those securities at inflated prices. As a result of Hwang’s trading, Archegos allegedly underwent a period of rapid growth, increasing in value from approximately $1.5 billion with $10 billion in exposure in March 2020 to a value of more than $36 billion with $160 billion in exposure at its peak in March 2021.” Read Archegoes History
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
