The Swiss wealth manager has until Monday to decide whether to keep appealing a French criminal conviction – it is weighing the effect on its other activities in doing so.
Zurich-based UBS is «reluctant» to accept a ruling handed down by a Parisian appeals court on Monday which lowered its criminal fine to $2 billion, «Bloomberg» reported on Friday, citing one source. The Swiss bank is leaning towards a renewed appeal, the newswire reported.
UBS's motivation to do so is partly out of fear the conviction and fine could imperil its business. Specifically, it may lead clients in U.S. public pensions or major institutional clients in Asia to reconsider their business with UBS, as finews.com wrote.
Denied Key Backing
The bank has stowed 450 million euros ($508 million) against a potential multi-billion-euro penalty. The matter has wider consequences, even if management and UBS' top legal overseer are new (CEO Ralph Hamers and Barbara Levi, respectively).
Two years ago, shareholders refused a routine backing of UBS' board and management over the costly issue. Both UBS and French prosecutors may appeal this week's decision.
