UBS is paying a fine for its takeover of Credit Suisse and has agreed to pay a fine, albeit in advance, of $387 million for the bank’s mismanagement of risks with US fund Archegos, AFP reported.

“Credit Suisse failed to adequately address Archegos risk despite repeated warnings,” the US Federal Reserve said in a press release on Monday.

The measure was taken in conjunction with the Bank of England, which also reported “significant weaknesses in risk management and governance” in a separate statement.

UBS will pay $268.5 million in the US and £87 million in the UK ($119.2 million).

This is the largest fine ever imposed by the Prudential Regulation Authority (PRA), an arm of the Bank of England.

“Credit Suisse’s failure to effectively manage risks was extremely serious and posed a serious threat to the safety and soundness of the business. The seriousness and prevalence of these failures has resulted in today’s fine being the largest ever imposed by the PRA,” commented Sam Woods, Chairman of the PRA.

The Archegos fund made risky bets on the stock market by borrowing money from banks, but was unable to cover its positions when markets fell and then collapsed in 2021, costing Credit Suisse more than $5 billion.