The U.K.’s financial regulator put Credit Suisse on its watchlist for tougher supervision, according to a «Financial Times» report Monday.

The Financial Conduct Authority’s move last month to put the troubled Swiss bank on the watchlist was on concerns Credit Suisse hadn’t moved the needle far enough on improving its culture, governance and risk measures, according to a «Financial Times» report (behind paywall) citing a letter sent in May.

The letter sought evidence of fresh moves to prevent misconduct, including dealing with «persistent» cultural issues, the report said.

«Well-Advanced» Efforts

Being added to the watchlist signals serious concerns as only around 20 institutions are usually on the list, out of around 60,000 under regulation, the report said, citing a person familiar with how the list operates.

Credit Suisse told the «Financial Times» in a statement that it doesn’t comment on its talks with regulators, but that it was «well advanced» on its plan to strengthen its risk culture. The bank did not immediately return finews.asia’s emailed request for comment, which was sent outside of Swiss office hours.

Archegos-Greensill

The twin debacles surrounding the bankruptcy of Archegos and the closure of Credit Suisse's Greensill funds, continue to haunt the bank.

Archegos Capital Management was a family office managing Bill Hwang’s personal assets; the private investment firm collapsed amid allegations of fraud and market manipulation. Credit Suisse lost around $5 billion in its dealings with Archegos.

Market Disruptions

Greensill Capital and Credit Suisse ran $10 billion in supply chain finance funds together – Greensill would make supply-chain loans to companies and then create notes based on the loans; the notes were marketed as safe, insured investments.

But after the collapse of Greensill amid Covid-related market disruptions, allegations emerged of fraudulent dealings; Credit Suisse also faced allegations of conflict of interest in its dealings with the company.

Russian Oligarchs

Foreign authorities have now launched criminal investigations into both Greensill and Archegos, while the Swiss Financial Market Supervisory Authority (Finma) has opened inquiries.

Purported class-action lawsuits have also been filed in the U.S. related to Archegos-Greensill. U.S. plaintiffs have also targeted Credit Suisse management and business relationships with Russian oligarchs.