UBS CEO Sergio Ermotti one thing was clear: A comparison with the French justice on allegations of aiding tax evasion is not out of the question, because that would create “a dangerous precedent,” said Ermotti at the annual General meeting in 2017.
Now the big Bank has been sentenced in the first instance by the Paris criminal court. The UBS to pay 3.7 billion Euro buses, add to this 800 million in damages to the French state for lost taxes. More than 5 billion Swiss francs.
UBS announced immediately, the judgment to move on. “Despite today’s decision, I continue to believe that justice will prevail at the end,” said UBS chief Ermotti, in an internal Memo. The judgment should, however, have stock, ask the Bank Manager if it could pose a danger. “In the U.S., the UBS case was interests of the a blueprint for other countries, banks for aiding tax evasion,” says a Swiss Bank Manager behind his Hand. A final judgment could have a similar effect, so is the fear.
Long impasse threatens
Other banks such as Credit Suisse does not want to comment. “It is too early for a definitive assessment,” said a spokesman for the Swiss bankers Association.
the only certainty is that the criminal proceedings will adversely affect UBS for years to come. The hearing before the next instance, the court of appeals is not expected before the year 2020. “Investors do not like uncertainty, but the Management took this into account,” says Andreas Venditti, a Bank analyst at Vontobel. After the judgment, the UBS share price fell temporarily to 5 percent, at the end of the day, Minus about 3 percent.
Venditti believes that the ruling could have implications for other Swiss banks. “Apparently, the lawsuit is based on statements of former UBS employees. As long as there are not other banks also such a Whistleblower, I see no immediate danger that other banks will come to the attention of the French judiciary.”
it is also Possible that the judgment for which UBS will have financial consequences. It is an open secret that UBS, in addition to France and Germany – reached an agreement where you in 2014 to pay an amount of 300 million Euro, other EU States had tilled, rich animate private customers for the opening of black money accounts in Switzerland. The eyes have now turned to Italy and Spain; both countries can use every Euro to the exchequer.
Hard words everywhere
The method has a long history. Five Ex-employees of UBS in France turned to in 2010, the French banking supervision. They pointed out that there is in the case of the UBS France has a secret book-keeping, the so-called milk booklet. The financial flows would be recorded French customer, to determine which part of the commissions to French, and what to Swiss UBS adviser should go.
judge Christine Mée looked at it now as proved, that the UBS and five former employees had helped between 2004 and 2012, French Tax evaders to hide their money in Switzerland before the tax authorities. In addition, Swiss Bank consultants Golf have tournaments, concerts, and hunting events used to illegally clients to recruit on French soil.
With your guilt Mée followed the demands of the public Prosecutor’s office. And did not spare hard words. The justice system would sanction with the billion buses error “of exceptional Severity”. The failure of its roots have had to behave in a “structured, systemic, and old organization”.
UBS was also not shy of the hard words. The ruling “is supported by no concrete proof, but is based on unsubstantiated allegations of former employees who have not been consulted during the process.” There is no evidence that the Swiss consultants would be recruited French clients on French soil illegally. The judgment also “evidence and a credible methodology” for the calculation of the fine and the damages were missing.
Five Ex-Manager
sentenced in addition to the Bank and its French subsidiaries are also five Ex-Bank Manager. Patrick de Fayet, for example, the former number two of the UBS France, imposed by the court a conditional jail sentence of 12 months, in addition to a fine of 200’000 euros. The former head of the French Onshore and offshore business Dieter Kiefer received a conditional jail sentence of 18 months and a fine of 300’000 euros. The Ex-Private-Banking-in-chief Raoul Weil was acquitted, however, is free.
In the year of 2014 was close in the method, a comparison with the Attack. But then the United States condemned the French major Bank BNP Paribas to a fine in the amount of 9.8 billion dollars, because they have violated US sanctions. From the Moment that the comparative claims of the French justice had gone through the ceiling is heard. So was set in September 2014, the security Deposit of 1.1 billion euros.
the UBS Would have to accept a comparison? “The next instance will reopen the case, the output is completely open,” says Bank analyst Venditti. “Therefore, it is now difficult to whether UBS would have gone with a comparison better.”
(editing Tamedia)
Created: 20.02.2019, 22:58 PM
