- The Swiss Financial Market Supervisory Authority FINMA completed its enforcement proceedings against Credit Suisse Group AG CS about his business relationship with financier Lex Greensill and his companies.
- FINMA finds that Credit Suisse has seriously violated its supervisory obligations with regard to risk management and appropriate organizational structures in this context.
- “FINMA’s case concluded that Credit Suisse has seriously failed in its oversight obligation to adequately identify, limit and monitor the risks associated with its business relationship with Lex Greensill over a period of years,” she added, adding that they found “serious deficiencies in the organizational structures of the bank” during the period under review.
- “In addition, it has not sufficiently fulfilled its supervisory duties as an asset manager. FINMA has therefore come to the conclusion that there has been a serious violation of Swiss supervisory law.”
- The bank’s most important (around 500) business relationships would henceforth be periodically checked for counterparty risks at board level, the supervisory authority said.
- The bank’s 600 highest executives must also record their areas of responsibility in a responsibility document and have them 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 Greensill companies. Immediately after the funds were closed 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 raised.
- Price promotion: CS shares are down 0.98% to $3.03 during the premarket session last check Tuesday.
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