UBS is involved in this affair following its acquisition of Credit Suisse on March 19. But the DoJ is also investigating possible failures in the control of the largest Swiss bank, according to one of Bloomberg’s sources. The investigation is still at a preliminary stage and may not result in prosecution or an out-of-court settlement.
“Exaggerated” share decline
The DoJ has requested information on how the two banks have managed the accounts of customers under sanctions in recent years, but has not interviewed executives or employees at this time. This investigation covers restrictions imposed after the invasion of Ukraine in 2022 and after Russia’s annexation of Crimea in 2014. More than a thousand Russian nationals were placed on US blacklists over the past ten years. last years.
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UBS shares lost up to 8% on Wednesday morning in Zurich, before ending the session with a decline of 2.9%. The market reaction was deemed excessive by a financial analyst from Kepler Chevreux, even if this investigation illustrates the legal risks to which UBS has been exposed since its acquisition of Credit Suisse, according to this specialist. Neither bank wanted to comment to Bloomberg.
The DoJ saw the takeover of Credit Suisse as an opportunity to advance the investigation into the former number two Swiss bank. Information was requested directly from UBS, without going through diplomatic channels, which can be slower. The Federal Office of Justice said it had not received requests regarding Credit Suisse, UBS and sanctions against Russia.
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