With the emergency takeover, UBS also inherited all legal cases and penalties of the crisis-ridden bank. Now Credit Suisse could be fined millions more in Asia.
The financial authorities in South Korea have apparently informed Credit Suisse (CS) that it could be fined up to 50 billion won, the equivalent of around 33 million Swiss francs. According to local newspapers and the «Reuters» agency, this is due to alleged violations of the rules on the short-selling of stocks.
CS would have to pay the most
The Koreans are directing such accusations at around ten internationally active banks; the authority intends to publish the results of a large-scale investigation on Friday, May 3. According to the report, the impending penalties could amount to more than 60 million francs. The Swiss bank, or rather its legal entities in Korea and Singapore, would have to pay the most.
UBS, the new parent company of CS, did not wish to comment on the report to the agency. UBS's legal department is likely to have grudgingly accepted the news from the Korean regulator.
Billions set aside
With the compulsory takeover in March 2023, the Swiss market leader also took over all of the legal legacy of the scandal-plagued CS. To this end, UBS made provisions of more than 4 billion dollars in its own books and at the new subsidiary.
Only the next few years will show whether this enormous sum was calculated too optimistically.
