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UBS is expected to pay several hundreds of millions in penalties over Credit Suisse’s massive $4.7bn writedown tied to the Archegos Capital, as per FT. UK’s Prudential Regulation Authority could impose a fine of up to £100mn ($127.81mn) and the US Federal Reserve could impose up to a $300mn penalty. Credit Suisse has only set aside $35mn for potential penalties and thus the acquisition requires UBS to take up these charges. Prior to its acquisition that got completed last week, UBS had set aside $4bn for potential lawsuits on the Credit Suisse deal in May.
UBS’s dollar bonds were trading flat with its 7% Perp at 97.1, yielding 12.1% to its call date of 31 January 2023.
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