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 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.
(Reporting by Brenna Hughes Neghaiwi; Editing by Riham Alkousaa)
