ed Image
Credit Suisse has been found to have “seriously breached” its duties in its handling of the Greensill Capital case, according to a report from the Swiss financial regulator FINMA.
The regulator said that it had identified “significant shortcomings” in the bank’s risk management and compliance processes. It also found that the bank had failed to properly assess the risks associated with its involvement in the Greensill Capital case.
The report comes after Credit Suisse announced in March that it was taking a $4.7 billion write-down on its exposure to Greensill Capital, a now-defunct supply chain finance firm. The write-down was one of the largest losses in the bank’s history.
FINMA said that Credit Suisse had failed to properly assess the risks associated with its involvement in the Greensill Capital case, and had not adequately monitored the activities of the firm. It also said that the bank had failed to ensure that its internal controls were adequate to manage the risks associated with the case.
The regulator said that it had identified “significant shortcomings” in the bank’s risk management and compliance processes, and that it had taken “appropriate supervisory measures” to address these issues.
FINMA said that it had taken “appropriate supervisory measures” to address the issues identified in its report, and that it would continue to monitor the bank’s progress in implementing these measures.
The regulator also said that it would continue to investigate the matter further, and that it would take further action if necessary.
The news of FINMA’s findings comes as Credit Suisse is facing increasing scrutiny over its handling of the Greensill Capital case. The bank is currently under investigation by several regulators, including the U.K.’s Financial Conduct Authority and the U.S. Department of Justice.
The findings of FINMA’s report are likely to add to the pressure on Credit Suisse, as it faces increasing scrutiny over its handling of the Greensill Capital case. The bank is already facing a number of lawsuits from investors who lost money in the collapse of the firm.