Nov. 21, 2014, 8:17 AM
- UBS Group AG is set to begin trading next week in Zurich and New York - replacing UBS AG - after 90% of shareholders tendered their shares for stock in the new holding company.
- UBS believes the creation of this holding company is likely to reduce the amount of capital it must hold as Swiss regulators believe it will make the wind-down of subsidiaries easier, thus preventing the chance of systemic effects.
- In a further move, UBS plans to create a banking subsidiary in Switzerland by mid-2015 which will house retail, corporate, and the Swiss-booked wealth management business. The U.K. unit will be reorganized to make it more self-sufficient, and there will be an intermediate holding company for all U.S. units by mid-2016.
- Credit Suisse (NYSE:CS) already has a group holding structure, but is planning changes along the lines of some of UBS's moves.
Nov. 12, 2014, 2:24 AM
- Global regulators have fined six major banks, including UBS (NYSE:UBS), HSBC (NYSE:HSBC), Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS), JPMorgan (NYSE:JPM) and BofA (NYSE:BAC), a total of $4.3B over allegations of price fixing and manipulating benchmarks in the $5T-a-day foreign exchange market.
- The penalties were imposed by Britain's Financial Services Authority, the U.S. Commodity Futures Trading Commission and Swiss regulator FINMA.
- Barclays (NYSE:BCS) had been expected to be part of the settlement but the FCA said its investigation into the U.K. bank was continuing.
Nov. 9, 2014, 11:55 AM
- UBS will settle allegations of misconduct at its gold trading business this week together with a planned agreement between U.K. and U.S. authorities and seven banks over accusations of forex market rigging.
- UBS previously disclosed a probe of its precious metals business in addition to its forex investigation.
- Previously: Banks brace for FX settlements
Nov. 5, 2014, 3:49 PM
- Jonathan Lewis is currently co-CFO at Nomura, but he's coming over to UBS to replace the departing Bob Stefanowski as CFO of the investment bank. He'll join the Swiss lender in February, according to a memo from investment bank chief Andrea Orcel.
- Prior to his 6 1/2-year stint at Nomura, Lewis was with Bear Stearns. He's joining the UBS investment bank at a time when UBS has placed strict limits on its balance sheet and risk-taking, and instead focuses its growth strategy on wealth management.
Oct. 31, 2014, 10:38 AM
- Royal Bank of Scotland (RBS +4.8%) is the latest to do so, today announcing the setting aside of $640M for potential settlements in the currency-rigging investigations.
- In total, seven major U.S. and European banks have boosted their legal reserves by $6.5B in October. Last night, Citigroup (C +0.4%) was forced to cut its Q3 earnings by $600M amid "rapidly-evolving" probes.
- UBS has put aside the most of any single bank this month - $1.9B. Next in line is Deutsche Bank (DB +0.7%) with $1.1B, and JPMorgan (JPM +1.3%) with $1B. None of the lenders disclosed exactly how much was specifically for foreign exchange, and none have yet been formally accused of wrongdoing.
- Barclays (BCS +5.6%) reserved $800M for FX-related settlements, and Credit Suisse (CS +0.5%) $400M.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
Oct. 28, 2014, 9:13 AM
Oct. 28, 2014, 8:11 AM
- “I think we have seen the peak in litigation costs,” says fund manager Peter Stenz. "At some point we'll see the light at the end of the tunnel."
- Speaking on Bloomberg after earnings, UBS chief Sergio Ermotti suggested legal conclusions are coming in the "foreseeable future."
- "A speedy foreign exchange resolution globally should clear the decks for UBS," say analysts at JPMorgan, calling the bank's underlying results this quarter "very solid."
- Shares +5.1% premarket
- Previously: UBS reports profit increase despite litigation charges
Oct. 28, 2014, 4:36 AM
- UBS (NYSE:UBS) reported this morning that its third-quarter profit increased 32% Y/Y despite a loss of 1.8B Swiss francs in litigation charges.
- The bank reported net profit of 762M francs ($802M), up from 577M francs reported in the same period a year ago.
- UBS does not expect its regulatory environment to improve soon, warning that charges associated with litigation, regulatory and similar matters will remain elevated for the foreseeable future.
- UBS +2% premarket
Oct. 21, 2014, 8:49 AM
- At issue are charges of rigging Swiss franc Libor benchmark interest rates, and JPMorgan (NYSE:JPM), UBS, and Credit Suisse (NYSE:CS) will be collectively fined more than $115M, reports Reuters. Not being penalized is RBS thanks to its role as a whistleblower in the case.
- JPMorgan is reportedly set to receive the biggest fine at about $89M.
Oct. 10, 2014, 5:22 AM
- The U.K.'s Financial Services Authority has accused six banks, including JPMorgan (NYSE:JPM) and UBS (NYSE:UBS), of system and control failures in their forex operations, the FT reports.
- The allegations are part of the FSA's investigation into the possible manipulation of currency markets, which is one of a number of probes by authorities around the world.
- Last month, the U.K. regulator started settlement talks with the two banks, as well as with Barclays (NYSE:BCS), Citigroup (NYSE:C), HSBC (NYSE:HSBC) and RBS (NYSE:RBS). The discussions could lead to fines of £1.5B in total.
- By focusing on an inability to stop staff from engaging in misconduct rather than on actual manipulation, the FSA could help the banks limit the impact of lawsuits that have been filed in the U.S. over forex rigging.
Oct. 6, 2014, 3:30 PM
- Part of a bank-wide refocus on private banking, UBS France is in talks with unions over possible layoffs as it maps out a restructuring of its asset management business.
- The discussions are called a social plan and are required by French law when layoffs of more than 10 are being considered. A bank spokeswoman says the restructuring is not related to the bank's recent legal troubles in France, with prosecutors recommending a $6.13B fine over tax violations.
Oct. 6, 2014, 4:45 AM
- Switzerland has given French authorities documents on 300 UBS (NYSE:UBS) customers suspected of evading tax, says Reuters quoting the SonntagsZeitung newspaper.
- The delivery of the documents was made possible under a revision to the Swiss Tax Administrative Assistance Act that came into force on Aug. 1 and makes it easier for other countries to obtain information on suspected tax dodgers.
- Previously: UBS faces massive fine in French tax evasion case
Oct. 3, 2014, 4:44 AM
- UBS (NYSE:UBS) says an earlier report about a potential $6.3B fine for tax evasion in France relies on "speculative" calculations and is "not based on facts."
- The matter "is currently still in the stage of a formal investigation and we will continue to defend ourselves strongly," bank says.
- UBS has criticized the probe as a “highly politicized process” that hasn’t followed “elementary facets of the rule of law.”
- UBS shares -1.8% in Zurich.
Oct. 3, 2014, 3:54 AM
- UBS (NYSE:UBS) could be hit with a fine as large as CHF6B ($6.3B) for tax evasion in France, Le Temps says.
- The report cites a legal document dated July 23 written by the investigative judges leading the case, who suspect UBS incited French residents to open accounts in Switzerland between 2004 and 2011.
- UBS -2% in Zurich.
- Related: UBS discussed €100M settlement before negotiations broke down (July 28)
- Related: France probing UBS over tax evasion (July 24)
- Update: UBS says the calculations used by Le Temps are “speculative, not based on facts.”
Sep. 29, 2014, 7:52 AM
- The new holding company - to be known as UBS Group (NYSE:UBS) - is expected to allow the bank to better handle the next financial crisis. Existing owners are being offered a one-for-one exchange for their shares.
- The new structure - while not affecting UBS's strategy - is expected to allow the bank to lower its capital requirements under Swiss regulatory rules. UBS expects to return about 0.25 Swiss francs or roughly $0.27 per share sometime after the exchange (offer expires on Dec. 1).
Sep. 29, 2014, 6:43 AM
- UBS (NYSE:UBS) has entered settlement talks over allegations it was involved in manipulating foreign exchange rates.
- Although the bank did not identify a regulator, Reuters was informed by sources on Friday that Britain's Financial Conduct Authority was talking to UBS and five other banks - Barclays (NYSE:BCS), HSBC (NYSE:HSBC), Royal Bank of Scotland (NYSE:RBS), JP Morgan (NYSE:JPM) and Citi (NYSE:C).
- A settlement could result in each bank being fined hundreds of millions of pounds, depending on the severity of the misconduct.
- As well as the FCA, authorities in the U.S., Switzerland and Hong Kong are investigating the $5.3T a day foreign exchange market.
UBS Group AG engages in the provision of wealth management, investment banking, retail and commercial banking services. It operates through the following segments: Wealth Management, Wealth Management Americas, Retail & Corporate, Global Asset Management, and Investment Bank. The Wealth... More
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