Credit Suisse was found to have severely broken its obligations in the Greensill case by a Swiss watchdog.

(Reuters) BERLIN According to FINMA, a Swiss financial watchdog, Credit Suisse “seriously breached its supervisory duties” in regard to its commercial dealings with financier Lex Greensill and his companies.

The second-largest bank in Switzerland is attempting to recover money from the fall of $10 billion in funds connected to the bankrupt supply chain finance company Greensill. To do this, it has been working to overhaul its risk management and compliance.

Credit Suisse “seriously breached its supervisory obligations in this situation with respect to risk management and appropriate organisational structures,” according to FINMA’s review. The authority added that corrective actions had been mandated.

According to the regulator, the executive board level will now routinely review the bank’s most crucial business partnerships (roughly 500 in number) for counterparty risks.

The 600 most senior bank managers must also have their responsibilities listed in a document of responsibility, and the bank must discipline them “if they do not organise and manage their business area in such a way that misconduct is avoided as far as practicable,” according to FINMA.

According to the regulator, four enforcement actions have been started against previous lenders’ managers. They could be barred from the industry for up to five years.

Ulrich Koerner, CEO of Credit Suisse, expressed his appreciation for the “conclusion of FINMA’s efforts.”

“FINMA’s review has reinforced many of the findings of the Board-initiated independent review,” he said in a statement. “It also highlights the importance of the steps we have taken in recent years to strengthen our Risk and Compliance culture.”

74% of the $10 billion net asset worth of the fund as of the suspension date has already been received.