To date, Switzerland’s financial markets regulator has reacted to Credit Suisse’s latest disaster by merely insisting they note the massive loss suffered in the Archegos Capital Management disaster among their risk-weighted assets. But, if they’re honest, they’re pretty miffed about this scandal following so closely on the heels of the last one. How miffed? Why, this most banker-friendly authority and country might just consider may someday levying a fine against those responsible!
The debate, the biggest public discussion about banking reform since the financial crash, centres on ending the current laissez-faire regime, where fines on bankers are not possible, to copy Britain's stricter rule book…. [Green Party member of Parliament Gerhard] Andrey's proposals, which follow the ground-breaking British model that makes top management of financial firms directly accountable for their actions, are set to be discussed by Swiss lawmakers in the coming days….
The string of scandals angered officials at supervisor FINMA, who struggle to hold bankers to account because Swiss rules only allow it sanction directors if directly involved in wrongdoing rather than for general managerial lapses.
A FINMA spokesman told Reuters that it welcomed a discussion about "optimising" "questions about personal responsibility", adding that other financial centres "go significantly further than Switzerland".
And, of course, they more they learn about things, the angrier they are likely to become.
Bankers in Credit Suisse’s commodity trade-finance unit blacklisted [Sanjeev] Gupta’s Liberty Commodities Ltd. in 2016 because they suspected some of its deals weren’t legitimate, the people said. When they learned about two years later that the bank was lending to his companies through a suite of investment funds, which eventually grew to $10 billion, they flagged their worries to leaders in compliance and the division that housed the loans, one of the people said…. Nevertheless, executives at Credit Suisse’s asset-management division -- which creates investment products for clients and charges a fee for overseeing them -- began arranging a suite of funds focused on supply-chain finance in 2017. The entities bought securitized loans packaged by Greensill, a firm created by Australian businessman Lex Greensill. Much of the debts were linked to Gupta’s businesses.
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