- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
Senior leadership at UBS acknowledged the significant work ahead of Switzerland’s largest bank as it begins preparing to absorb the country’s second-largest bank, Credit Suisse.
“Both banks have to be continued and integrated in the coming years,” said Lukas Gähwiler, UBS’s vice chairman of the board of directors, during the bank’s annual general meeting of shareholders Wednesday. “This is a Herculean task that will need more rather than fewer people in the short run.”
UBS announced March 19 it would purchase Credit Suisse for 3 billion Swiss francs (U.S. $3.3 billion) after the latter institution was deemed at risk of becoming illiquid as depositors raced to withdraw their funds from the bank. The Swiss Financial Market Supervisory Authority (FINMA) stepped in to help coordinate the merger once it determined recent initiatives undertaken by Credit Suisse to overhaul its risk management practices and restore its reputation weren’t enough to restore confidence in the bank.
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UBS announced Christian Bluhm will remain in his role as group chief risk officer “for the foreseeable future” as the Swiss bank grapples with integrating Credit Suisse into its business.
Except for Credit Suisse’s demise, Europe has so far largely patted itself on the back for preventing further contagion in the banking sector following the failures of Silicon Valley Bank, Silvergate Bank, and Signature Bank in the United States.
Banking regulators defended their supervisory actions and pledged to find answers as to what went wrong when discussing the factors leading to the failures of Silicon Valley Bank and Signature Bank before the Senate Banking Committee.
When the DOJ released its revised Evaluation of Corporate Compliance Programs, it turned some heads. Tucked into a section on risk assessments was a strongly worded series of questions that appeared to shoulder compliance teams with the responsibility for ensuring the safe use of AI tools by their firms.
The Department of Justice’s Evaluation of Corporate Compliance Programs has made the importance of artificial intelligence governance frameworks clear, but it didn’t say what role compliance should play. Here’s the answer.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions about their obligations to report deepfakes, warning artificial intelligence has given bad actors additional tools in their arsenal.
