Swiss bank and investment provider Credit Suisse has been fined £87m by the Prudential Regulation Authority for “significant failures in risk management and governance” related to the collapse of Archegos Capital.

It has also been fined $269m (£210m) for "unsafe and unsound counterparty credit risk management practices" by the US Federal Reserve.

The collapse of Archegos Capital caused a £4.3bn trading loss for Credit Suisse and was one of the main reasons for its collapse and subsequent £2.5bn takeover by rival Swiss bank and wealth manager UBS last month.

A series of problems in the last year caused a crisis of confidence in the bank’s future with an “emergency rescue deal” announced in March.

The PRA fine related to failures connected to Archegos between 1 January 2020 and 31 March 2021.

Sam Woods, deputy governor for prudential regulation and chief executive 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 firm. The seriousness and widespread nature of those failures has led to today’s fine, which is the largest ever imposed by the PRA."

The PRA said Credit Suisse’s breaches led the firm failing to:

• Instil a culture within the investment banking division that appropriately balanced the considerations of risk against commercial reward;
• Evaluate and take due account of the risks to the Credit Suisse group, arising from their exposures in relation to Archegos’ portfolio;
• Appropriately escalate the risks within Archegos’ portfolio with the result that there was inadequate oversight in the UK of risk remotely booked in;
• Take sufficient steps to implement an effective risk mitigation strategy in respect of Archegos’ portfolio. Including a failure to take reasonable steps to reduce risk when it would have been prudent to do so; and
• Have a governance framework that adequately scrutinised or discussed the risks posed by Archegos’ portfolio

Credit Suisse agreed to resolve the matter and therefore qualified for a 30% reduction in the fine imposed by the PRA. Without the discount, the fine imposed by the PRA would have been £124.4m.