- The Swiss Financial Market Supervisory Authority FINMA has concluded its enforcement proceedings against Credit Suisse Group AG CS concerning its business relationship with financier Lex Greensill and his companies.
- FINMA finds that Credit Suisse seriously breached its supervisory obligations in this context concerning risk management and appropriate organizational structures.
- "In its proceedings, FINMA concluded that Credit Suisse seriously breached its supervisory duty to adequately identify, limit and monitor risks in the context of the business relationship with Lex Greensill over a period of years," adding that it also found "serious deficiencies in the bank's organizational structures" during the period under investigation.
- "Furthermore, it did not sufficiently fulfill its supervisory duties as an asset manager. FINMA thus concludes that there has been a serious breach of Swiss supervisory law."
- The regulator said that from now on, the bank's most important (approximately 500) business relationships would be reviewed periodically for counterparty risks at the executive board level.
- The bank's 600 most senior managers must also have their areas of responsibility recorded in a document of responsibility and must be sanctioned by the bank.
- Credit Suisse CEO Ulrich Körner welcomed the conclusion of the FINMA investigation.
- In March 2021, Credit Suisse closed four funds related to companies of Greensill. Immediately after the closure of the funds in March 2021, Finma took various risk-reducing measures and opened enforcement proceedings.
- So far, $7.4 billion of the fund's $10 billion net asset value at the time of its suspension has been collected.
- Price Action: CS shares are down 0.98% at $3.03 during the premarket session on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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