FINMA: Credit Suisse ‘seriously breached’ duty regarding Greensill
By 
Aaron Nicodemus2023-03-01T17:26:00
Poor risk management by Credit Suisse’s asset management company kept the Swiss bank mostly unaware of the risky nature of lending procedures used by financier Lex Greensill that would lead to the collapse of his supply chain startup, according to Switzerland’s Financial Market Supervisory Authority (FINMA).
Credit Suisse’s asset management company had little knowledge or control over securitized claims made by Greensill on behalf of four Credit Suisse funds from 2017-21. In addition, the bank did not have any insight or control over insurance coverage made in its name for those claims, FINMA said.
As a result, Credit Suisse breached its supervisory obligations regarding its risk management practices and was ordered by FINMA on Tuesday to implement remedial measures to address the shortcomings.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefFINMA guidance calls out Swiss bank failings on AML risk analysis
Switzerland’s Financial Market Supervisory Authority published new guidance to improve banks’ money laundering risk analysis after repeatedly identifying shortcomings during on-site supervisory reviews.
-
News BriefCredit Suisse unit to pay $900K over reporting, supervisory lapses
Credit Suisse Securities agreed to pay $900,000 to settle charges levied by the Financial Industry Regulatory Authority regarding reporting and supervision lapses.
-
News BriefCredit Suisse discloses ICFR ‘not effective’ in 2022
Credit Suisse Group disclosed in its annual report its internal control over financial reporting was “not effective” for the fiscal year ending December 2022.
More from Regulatory Enforcement
-
ArticleSFO head to step down as speculation grows over future of agency
Nick Ephgrave, director of the U.K.’s main anti-corruption enforcement agency, the Serious Fraud Office, will retire at the end of March—about halfway through his appointed five-year term. Experts say he leaves the agency in a lot better position than he joined it in September 2023.
-
News BriefFTC puts GM’s puts connected vehicle data practices under compliance spotlight
The U.S. Federal Trade Commission finalized its order against General Motors and its OnStar subsidiary over the improper usage of geolocation and driving behavior data of drivers.
-
ArticleKaiser plans pay $556M to settle Medicare upcoding allegations
Kaiser Health affiliates have agreed to pay more than $556 million to settle allegations originally made by whistleblowers that they ignored compliance department warnings and unlawfully reworked diagnoses for Medicare patients in order to receive higher payments from the federal government.