Even before a whopping $5 billion penalty in a French criminal scandal, UBS was already in the double-digit billions of fines and penalties. finews.asia ranks the bank's biggest – and costliest – scandals.
1. $1.4 billion, rigging Libor, December 2012
2. $885 million, U.S. mortgages FHFA, July 2013
3. $780 million, U.S. tax, February 2009
4. $774 million, foreign exchange manipulation (CFTC), November 2014
5. $342 million, foreign exchange manipulation (DOJ), May 2015
6. 300 million euros, tax evasion Germany, July 2014
7. $230 million, U.S. mortgages (RMBS, DFS), March 2018
The league table isn't comprehensive – it lists only the fines and penalties UBS was hit with in the last ten years. All told, UBS has ponied up $12 billion in that period to put right past wrongs, according to Swiss publication «Finanz und Wirtschaft» (in German, behind paywall) – this translates to roughly one-third of aggregate pre-tax profits since 2009.
Wednesday's whopping 4.5 billion euro hit in France overshadows everything UBS has had to pay in recent history. The Swiss bank slammed the verdict and vowed to fight back with an appeal.
Major U.S. Case
The bank still has several other major probes hanging over its head: it is still on the hook with a U.S. justice investigation into residential mortgage-backed securities (the settlement above refers to New York's attorney general). Credit Suisse paid $2.5 billion at the end of 2016, as well $2.8 billion for damages.
UBS' settlement on the mortgage securities is expected this year. Consulting firm BCG estimates that banks globally have paid $321 billion in order to settle their past misdeed – UBS is adding $5 billion to that calculation with its France verdict.
