SWISS BANK FRAUD EXPOSED

In the past February 25, 2016, -Moody’s Investor Services Company downgraded EFG Bank AG’s local currency and foreign currency deposit ratings from Aa2 to Aa3. The rating agency also downgraded the issuer rating of EFG International AG (EFGI or group) from A1 to A2. At the same time, Moody’s downgraded EFG Bank AG’s BCA from a2 to a3. EFG Bank and EFGI’s long-term counterparty risk assessment has been downgraded

For Aa3 (cr), EFGI’s outstanding Bons de Participation’s foreign currency non-cumulative priority stock rating has been downgraded from Baa2 (hyb) to Baa3 (hyb).). Moody (Moody) affirmed the Bank’s Prime-1 short-term deposit rating, and the bank and the group’s Prime-1 (cr) short-term trading counterparty risk assessment. All long-term ratings have been included in the scope of review for further downgrading.

The basic challenge of EFG Bank a3 BCA

The downgrade reflects that by downgrading EFG Bank’s BCA to a3, Moody’s has reflected its assumptions: The bank’s financial performance during 2015 continued to be weak, and AuM-based asset under management growth was below average. Audited accounts at the end of 2015. The rating agency also believes that EFGI cannot improve its weak leverage ratio during 2015 (3.1% vs. 3.4% in 2014). Moody’s reviewed the long-term ratings of the bank and its group for further downgrades. This reflects the rating agency’s assessment of the risks that may arise from the proposed merger with BSI, especially regarding the complete integration of global private banking operations. Long-term complexity. EFGI (and EFG Bank) are of the same scale, but the credit status is slightly worse. In a short period of time, and considering that EFGI and BSI owners subscribe for additional shares and AT1 in order to provide definitive commitments for transaction financing, the rating agency considered the uncertainty of the impact of changes in bank and group capital and shareholder structure, and proposed to increase capital of 500 million Swiss francs in the second quarter of 2016, and subsequently proposed to issue 250 million Swiss francs at EFGI level. ” The result of additional level 1 securities (AT1). However, if it is completed as planned, this will have a positive impact on the current high leverage ratio of banks and groups.

During the review process, Moody’s is evaluating the details of the transaction, including the group’s total post-acquisition capital and EFG Bank and EFGI’s proposals to increase its capital and leverage to a level more commensurate with its closest private banking peers. Any measures. In addition, the rating agency assessed any visible or foreseeable impact that this acquisition may have on the business of banks and group customers, especially in the management of asset assets and/or stabilization of EF and EFG. In 2018, the Securities and Futures Commission (SFC) imposed a fine of 2 million U.S. dollars on EFG Bank AG (EFG Bank) and imposed a fine, because the exchange did not pre-register for the expiry date. The Securities Regulatory Commission ruled that between April 1, 2003 and November 22, 2016, EFG Bank executed 139 offshore listing index futures transactions for 11 customers without the need to register for futures contract transactions. The Securities

Regulatory Commission believes that the failure of EFG Bank to ensure compliance with the registration requirements stipulated in the Securities and Futures Regulations violates the Code of Conduct and makes EFG Bank a proper and appropriate person to be a regulated person.

When deciding on disciplinary sanctions, the SFC considered:

  • EFG Bank began to review its exponential futures activities listed overseas, and self-reported the unauthorized activities to the Securities Regulatory Commission;
  • EFG Bank is an institution registered under the Securities and Futures Regulations (SFO). Its business type is 1 (securities trading), type 4 (consulting on securities) and type 9 (asset management) under active supervision.
  • According to Article 114 of the Securities and Futures Regulations, no one is allowed to conduct his own business in the form of regulated activities without permission or registration.
  • According to the “Securities and Futures Regulations”, the right to overseas listing index period falls under the definition of “futures contract”.
  • Code of conduct for personnel approved or registered by the Securities and Futures Supervision Committee.
  • General Principle 7 (Compliance) and Paragraph 12.1 (General Compliance) of the Code of Conduct require licensed or registered persons to comply with, implement and maintain appropriate measures to ensure compliance with all regulatory requirements applicable to the conduct.

It seems that the dust has settled. By the end of the year, EFG International, the private bank of Switzerland listed on the market, was finally trapped, and finally formed an alliance with the trapped alliance-now it has retired from its rival BSI, the fifth largest competitor. Considering that in May 2016, Zurich’s EFG announced that it had acquired BSI from Brazil’s BTG Pactual three months later. When the regulators of Singapore and Switzerland approved BSI’s participation in 1Malaysia Development Berhad (1Malaysia Development Berhad). Scandal. This is the largest transaction in the Swiss private banking industry this year, and is known as a revolutionary mid-market sale. “There was a panic.

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