SNB says Archegos fallout demonstrates need for TBTF rules at Credit Suisse, UBS

SNB says Archegos fallout demonstrates need for TBTF rules at Credit Suisse, UBS

© Reuters. FILE PHOTO: Statues are seen on the building of the Swiss National Bank (SNB) in Bern, Switzerland May 20, 2020. REUTERS/Arnd Wiegmann/File Photo

ZURICH (Reuters) – Losses that arose from exposure to U.S.-based investment firm Archegos have demonstrated the need for ‘too big to fail’ capital requirements to ensure adequate resilience at Credit Suisse (SIX:) and UBS, the Swiss National Bank said on Thursday.

“This incident demonstrates that banks are exposed to significant risks that are not necessarily related to macroeconomic or system-wide financial shocks but may nevertheless lead to large losses,” the central bank said in its 2021 financial stability report.

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