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UBS fined 387 milly
(www.reuters.com)
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this post was submitted on 24 Jul 2023
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So not sure if I'm the only smoothbrain around these parts but I actually wasn't aware of the Fed's role in these enforcement actions and I didn't know what purview they had for the fines that this article is talking about. In case anyone else was curious: https://www.federalreserve.gov/supervisionreg/enforcement-actions-about.htm
With a link to the actual action in question: https://www.federalreserve.gov/newsevents/pressreleases/files/enf20230724a1.pdf
There is some juicy stuff in here:
WHEREAS, from approximately 2012 to 2021, Credit Suisse had a client relationship with Archegos Capital Management LP (“Archegos”), a New York-based family office, and also had a relationship with Archegos’ predecessor, Tiger Asia Management LLC, dating back to 2003. Credit Suisse’s New York-based Prime Services and Credit Risk Management staff were responsible for the Archegos relationship;
WHEREAS, Archegos employed a long-short equity strategy, with a focus on technology and media companies, and primarily used derivative contracts via total return swaps (“TRS”) with counterparties, including Credit Suisse. From at least mid-2020 through early 2021, Archegos repeatedly added long TRS positions in a limited list of single-name U.S. and Chinese stocks;
WHEREAS, the risk posed by Archegos’ increasingly concentrated TRS portfolio at Credit Suisse continued to increase from mid-2020 through early 2021, such that Archegos breached Credit Suisse’s internal risk limits throughout that entire period;
haha forget about Gamestop 😅
Oh another interesting tidbit:
WHEREAS, in or around late March 2021, Archegos defaulted on Credit Suisse’s margin calls, causing Credit Suisse, which lacked adequate margin, to liquidate its positions in the underlying names and suffer approximately $5.5 billion in losses;
haha don't think ole' Hwangi Boy enjoyed Mar10 day
I think its questionable that the fed even has a role in enforcement actions. Where does this money go? Almost like its going to be given back to them later. I also wonder if it gives them a blanket of security maybe. -Hey this bank screwed people we want to punish them.. "No they have already been punished with this amount of money. No other enforcements need to be done."