Swiss regulators found that Credit Suisse breached supervisory obligations in its dealings with now-bankrupt firm Greensill Capital, and have launched an investigation which could lead to penalties against four ex-bank managers.
The regulator ordered Credit Suisse to take remedial measures to improve risk management and governance.
Greensill Capital, which lent money to companies by buying their invoices upfront, collapsed in March 2021 when insurers withdrew cover, resulting in Credit Suisse trying recover $10bn of funds.
Swiss financial regulator, FINMA, announced that Credit Suisse had breached supervisory obligations in its relationship with Greensill Capital.
The failed lender, which securitised debts and sold them to wealthy investors via Credit Suisse, collapsed in March 2021 when insurers withdrew cover.
The bank has been trying to recover the $10bn in funds tied to the partnership.
FINMA ordered Credit Suisse to take remedial measures to improve risk management and governance, and it has now opened enforcement proceedings against four unnamed former employees.
While all sources agree that Credit Suisse was found to have seriously breached its supervisory obligations, the use of language varies slightly.
The Guardian reports that Credit Suisse "seriously breached its supervisory obligations," while Reuters states that the bank "seriously breached its supervisory obligations in this context with regard to risk management and appropriate organizational structures."
Additionally, The Independent and AP News both repeat quotes from the FINMA statement offering the possibility of penalties against former bank managers, whereas The Times highlights the regulator's order for Credit Suisse to take further measures to improve its risk management and governance.
Despite slight variations in language and emphasis, the key events remain the same across all sources: Credit Suisse is found to have breached supervisory obligations in its relationship with Greensill Capital, for which it securitised debts and sold them to investors which collapsed when insurers withdrew coverage.