- 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.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
