QBE has been dragged along in the Credit Suisse collapse. However, it said that it only had a “very limited” reinsurance exposure to the investment banking company.
The insurance giant further argued that any exposure to the now-collapsed banking company was “fully collateralised.”
The statement made QBE the only major ASX-listed insurer of Australia's big three insurers to confirm any reinsurance exposure to Credit Suisse.
“We don't have any investment exposure,” a QBE spokeswoman said, as reported by the Australian Financial Review (AFR).
Swiss Financial Market Supervisory Authority (Finma), the Swiss government body responsible for financial regulation, ordered Credit Suisse to take remedial measures – including a period executive board level-review of the most important business relationships for counterparty risks – and record the responsibilities of its 600 highest-ranking employees in a “responsibility document.”
However, Finma claimed that Credit Suisse Group AG breached its risk management obligations in the Greensill Capital supply-chain financing affair by allegedly using employees who managed relationships with Greensill to handle warnings, representing a conflict of interest as they were “not independent.”
On Monday, Credit Suisse's shares plunged 60.5% after banking giant UBS said it will buy the Swiss bank for nearly $3.25 billion in a deal orchestrated by regulators to stave off further turmoil in the global banking system.
