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.
Financial authorities in South Korea have apparently informed Credit Suisse (CS) that it could be fined up to 50 billion won ($36 million). According to local newspapers and the «Reuters» agency, this is due to alleged violations of the rules on the short-selling of stocks.
CS Pays the Most
The Koreans are directing such accusations at around 10 global 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. The Swiss bank's 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 in its own books and at the new subsidiary.
Only the next few years will show whether this enormous sum was calculated too optimistically.
