Posts Tagged ‘UBS’


Reuters  |  Posted: 12/04/2013 7:01 am EST  |  Updated: 12/04/2013 9:11 am EST 

Via: HuffPost

BRUSSELS (Reuters) – EU antitrust regulators fined six financial institutions including Deutsche Bank, Royal Bank of Scotland and Citigroup a record total of 1.71 billion euros ($2.3 billion) on Wednesday for rigging financial benchmarks.

The move confirms what a source familiar with the matter had previously told Reuters.

The penalty is the biggest yet to be handed down to banks for rigging the benchmarks used to determine the cost of lending, one of the most brazen violations of conduct since the financial crisis. It is also the highest antitrust penalty ever imposed by the Commission, the EU’s competition regulator.

The other banks penalized are Societe Generale, JPMorgan and brokerage RP Martin.

Deutsche Bank received the biggest fine of 725.36 million euros.

The European Commission said it would continue to investigate Credit Agricole, HSBC, JPMorgan and brokerage ICAP for similar offences.

The benchmarks involved are the London interbank offered rate, or Libor, the Tokyo interbank offered rate and the euro area equivalents. They are used to price hundreds of trillions of dollars in assets ranging from mortgages to derivatives.

“What is shocking about the Libor and Euribor scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other,” EU Competition Commissioner Joaquin Almunia said in a statement.


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UBS To Pay Fine, Give Up List Of Clients On Whose Behalf It Schemed

The New York Times reports:

Tearing a hole in the veil of secrecy surrounding Swiss banking, UBS agreed on Wednesday to pay $780 million to settle federal claims that it helped wealthy Americans evade taxes and to disclose the names of up to 19,000 clients….

Under the agreement, UBS admitted to conspiracy to defraud the Internal Revenue Service.

It’s that agreement to give up the names of its wealthy clients that’s the big deal here. The bank had been refusing to disclose the names, but appeared to cave with the threat of indictments hanging over its head.

Prosecutors allege that UBS helped clients evade $300 million a year in taxes.

Last fall, Raoul Weil, who ran the firm’s global wealth management and business banking division, was indicted in connection with the scheme. And a few months earlier, a former UBS exec, Bradley Birkenfeld, pleaded guilty to helping a client evade millions of dollars in federal income taxes while with the firm.

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