Swiss Lawmakers to Debate Stricter Banking Regulations, SZ Says
Swiss lawmakers will debate whether banking regulations should be tightened when a parliamentary committee sits this week to discuss the losses suffered by lenders in the collapse of Archegos Capital Management LP, SonntagsZeitung reported.
The conduct of Credit Suisse AG, the biggest loser to emerge from the blowup of Archegos, will be among the topics at the meetings scheduled for Monday and Tuesday, the newspaper reported, without citing where it got the information. Lawmakers have to weigh possible tighter rules for risk management, the provision of capital buffers and remuneration policies, Prisca Birrer-Heimo, a councillor with the Social Democratic Party, told SZ.
A spokesperson for Credit Suisse declined to comment.
Archegos’ implosion cost Credit Suisse $5.5 billion and forced it to raise about $2 billion of fresh capital to shore up its balance sheet. Its larger Swiss rival, UBS Group AG, also disclosed an $861 million hit from the collapse of Archegos and vowed to improve risk management.
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