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BOE Pushing Banks to Cut Staff Bonuses Linked to Archegos

  • Prudential Regulation Authority pushes back against payouts
  • Archegos collapse triggered more than $10 billion of losses
A pedestrian walks past the Bank of England in the City of London, U.K.

A pedestrian walks past the Bank of England in the City of London, U.K.

Photographer: Hollie Adams/Bloomberg
Updated on

U.K. regulators have pushed banks to cut bonuses to employees whose units were burned by the collapse of Archegos Capital Management last year, according to people familiar with the matter.

The Prudential Regulation Authority has challenged banks to justify compensation packages in detail and pushed back against some decisions to reward top earners seen to have taken on excessive risk, according to the people. The unraveling of Bill Hwang’s family office in March triggered losses of more than $10 billion across firms including Credit Suisse Group AG, Nomura Holdings Inc. and Morgan Stanley.