UBS agrees to pay $388 million over Credit Suisse’s Archegos failings

UBS (UBSG.S) has been ordered to pay $388 million to British and U.S. regulators over Credit Suisse’s dealings with private investment firm Archegos Capital Management, the Swiss bank said on Monday.

The settlement is the first of several that UBS could have to pay after it last month closed its takeover of Credit Suisse, inheriting the collapsed bank’s legal battles.

Under the agreement, UBS said Credit Suisse, now a subsidiary of the bank, has agreed to pay the U.S. Federal Reserve $269 million.

It will also pay the Bank of England 87 million pounds ($119 million), bringing the total payments to $388 million.

Reports ahead of time had suggested the U.S. regulator would impose a penalty of up to $300 million and the UK regulator would fine UBS up to 100 million pounds over the bank’s dealings with Archegos.

UBS on Monday said it would tighten up operational and risk management discipline at Credit Suisse after it completed its takeover of its smaller rival.

The bank also said it intended to resolve Credit Suisse’s remaining litigation in “the best interest of its stakeholders, including investors, clients and employees.”

UBS said in May, just before completing the deal, that it was setting aside $4 billion for potential lawsuits connected to its Credit Suisse takeover.

This report’s information was first seen on REUTERS; to read more, click this link.