Record £87 million fine imposed on Credit Suisse for 'extremely serious' risk management failures

The fine is the largest ever issued by the Bank of England's Prudential Regulation Authority (PRA).

The bank had fallen "well below" regulatory standards in its dealings with private investment firm Archegos Capital Management, officials said.

The episode caused significant financial and reputational damage to Credit Suisse, which also impacted other lenders, including UBS, which lost £671 million.

In addition to the fine imposed by the Bank of England, the US Federal Reserve also fined Credit Suisse £210 million over the same failures.

The fine is the latest in a string of setbacks for Credit Suisse, which was subject to a forced takeover by Swiss rival UBS earlier this year.

In an independent report, Credit Suisse's huge losses were attributed to a "fundamental failure of management and control at its investment bank and its prime brokerage division in particular." The fines will be paid by new owner UBS, which plans to tighten up operational and risk management discipline at Credit Suisse.

The bank has also vowed to resolve remaining litigation in the best interest of its stakeholders, including investors, clients, and employees.

The fine is the largest ever issued by the Bank of England's Prudential Regulation Authority (PRA) and marks the only time officials have established breaches of four of its "fundamental rules," including not acting with due skill, care, and diligence, as well as not having effective risk management strategies and controls.

Sam Woods, a BOE deputy governor and the CEO of the PRA, said: "Credit Suisse's failures to manage risks effectively were extremely serious, and created a major threat to the safety and soundness of the Firms [Credit Suisse International and Credit Suisse Securities]." The PRA said the failings were "symptomatic of an unsound risk culture within the business line that failed to balance considerations of risk against commercial reward appropriately." The bank had failed to learn from past similar experiences and had insufficiently addressed concerns previously raised by the PRA.

The fine unders