The Federal Reserve fined UBS $268.5 million in connection with “unsafe and unsound counterparty credit risk management practices” between Credit Suisse — the bank UBS recently acquired — and defunct investment fund Archegos, according to a consent order announced Monday.
Credit Suisse failed to adequately manage the risk posed by Archegos despite repeated warnings, the Fed said. Exposure to Archegos cost the Swiss bank roughly $5.5 billion in March 2021.
