<p>GENEVA — Switzerland’s financial markets authority said Thursday it is looking into possible penalties against Credit Suisse after the top-drawer bank announced “significant losses” linked to a U.S.-based hedge fund. </p>
<p>The authority, FINMA, said it will require “various risk-reducing measures” and investigate “possible shortcomings in risk management” at Credit Suisse. The authority said it is appointing an outside agent to look into the issue. </p>
<p>Two weeks ago, the bank announced it was taking a 4.4 billion Swiss franc ($4.7 billion) charge linked to a default on margin calls by U.S.-based Archegos Capital. </p>
<p>FINMA’s announcement came shortly after Credit Suisse reported a net loss of 252 million francs in the first quarter, largely due to the one-time charge. </p>
<p>CEO Thomas Gottstein said: “The loss we report in this quarter, because of this matter, in unacceptable.”</p>
<p>The bank said the charge off set “positive performance across wealth management and investment banking.”</p>
<p>FINMA also confirmed it opened in March proceedings against the bank in connection with its so-called “supply chain finance funds,” a financial instrument that is reserved for select clients.</p>
<p>The bank announced a suspension in redemptions and subscriptions in the fund on March 1 over insolvency issues linked to partner Greensill Capital.</p>
