When the highly leveraged family office Archegos Capital Management collapsed in March 2021, multiple investment banks suffered heavy losses amounting to as much as $10 billion. Investor confidence in Credit Suisse never fully recovered from the damage, ultimately leading to its rescue by UBS two years later.

In response, national regulators in the European Union, the UK and US have all taken steps designed to improve counterparty credit risk management in the banks they supervise. Last April