No more pussyfooting for UBS: the banking giant has taken to fighting tooth and nail against lawsuits – is the new strategy paying off?
Crystal clear in tone and content: «The DOJ’s claims are not supported by the facts or the law,» said UBS in a statement on Thursday. «UBS will contest any such complaint vigorously in the interest of its shareholders.»
UBS has yet another legal battle to fight in the U.S., where the Department of Justice intends to file a civil complaint against the Swiss-based bank. The complaint likely will seek unspecified monetary penalties in relation to the issuance, underwriting and sale of so-called residential mortgage-backed securities. The transactions go back to 2006 and 2007.
Hong Kong Woes
Standing up to the Department of Justice is news for a bank that has paid hundreds of millions of francs to authorities in several instances. But the new approach is in tune with its strategy in several other cases around the world.
The lawyers defending UBS have ridiculed the claims, a symbol for the strategy of hard balls defined by UBS General Counsel Markus Diethelm (pictured above) and his team of legal experts.
UBS also is fighting its corner in Hong Kong, where the local exchange authorities issued an 18 month ban on UBS to partake in initial public offerings in the former crown colony.
The reason the authorities gave for slapping the ban on the bank were alleged irregularities in context of several IPOs in Hong Kong. UBS wasn’t going to budge though and fought the ban and a subsequent fine of HK$15.8 million.
Most Prominent Case
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