Tag Archives: UBS

UBS Judge Strives For Best Way Forward As $2B Trial Wraps

Law360, New York (May 13, 2016, 8:00 PM ET) — A New York federal judge said Friday he is wrestling to come up with the best method for ruling on trustee U.S. Bank’s contract claims against UBS AG over $2 billion in bundled home loans as a three-week bench trial featuring 39,000 separate allegations of breach flowing from 8,000 allegedly defective mortgages wrapped.

U.S. Bank’s attorney pressed the judge to order UBS to pay for a swath of allegedly defective loans. (Credit: AP) U.S. District Judge P. Kevin Castel stressed again during a daylong closing session…

Source: Law360

UBS will pay $69.8 million to NCUA for credit union RMBS losses

The National Credit Union Administration announced this week that it reached a $69.8 million settlement with UBS, as the company becomes the latest to settle with the NCUA over losses related to several corporate credit unions’ purchases of faulty residential mortgage-backed securities in the run-up to the financial crisis.

According to the NCUA, it will receive $69.8 million from UBS in damages and interest for claims arising from losses to Members United Corporate Federal Credit Unionand Southwest Corporate Federal Credit Union.

Read on.

 

Former UBS Trader Challenges Bar Over Libor Misconduct

LONDON — A former UBS derivatives trader said on Thursday that he would fight an effort by the Financial Conduct Authority of Britain to bar him from the financial services industry for misconduct related to the setting of a global benchmark interest rate known as Libor.

The trader, Arif Hussein, says the regulator ignored crucial evidence in the case and relied on information provided by UBS’s lawyers, who conducted an internal investigation into potential manipulation of the London interbank offered rate, or Libor.

Mr. Hussein has challenged the Financial Conduct Authority’s decision before the Upper Tribunal, an administrative court in Britain. The tribunal will determine whether the Financial Conduct Authority can proceed with the ban or direct it to reconsider the decision.

Read on.

Ex-UBS Chief In Frame To Head Bank Watchdog

A former Deutsche Bank and UBS executive has emerged as a surprise contender to become Britain’s top banking regulator.

Sky News has learnt that Mark Yallop, whose CV also includes a spell as chief operating officer of Icap, the interdealer broker, is in the frame to become the next chief executive of the Prudential Regulation Authority (PRA).

Mr Yallop is already a non-executive director of the PRA, having been appointed in the summer of 2014, but a Whitehall source close to the process said he had indicated he would be interested in succeeding Andrew Bailey as its chief executive.

The news of Mr Yallop’s involvement in the process comes as George Osborne, the Chancellor, closes in on a decision about who will take over at the PRA.

Read on.

Banks Ordered to Defend Suit Claiming Benchmark Rate Was Rigged

  • Suit by Alaska pension fund can proceed to trial, judge rules
  • Bank of America, Barclays accused of rigging ISDAfix rate

Bank of America Corp., Barclays Plc and a dozen more banks must face investor claims that they rigged a benchmark used in the sales of interest-rate derivatives and other financial instruments.

U.S. District Judge Jesse Furman in Manhattan Monday rebuffed the banks’ request to throw out antitrust lawsuits accusing the institutions of colluding to set ISDAfix, affecting trillions of dollars of financial instruments. The rate is used to set prices on interest-rate swap transactions, commercial real-estate mortgages and other securities.

An Alaska pension fund and other investors raised “plausible allegations that a conspiracy among the defendants existed,” Furman said in a 36-page ruling. He allowed antitrust and breach-of-contract contract claims to proceed to trial, while throwing out other allegations.

Starting in 2009, the banks used electronic chat rooms and other means of private communication to set ISDAfix, typically submitting identical rate quotes, investors said in their suit. They are seeking billions in losses tied to the alleged rate-fixing scheme.

John Yiannacopoulos, a Bank of America spokesman, had no immediate comment on Furman’s ruling. Kerrie Cohen, a Barclays spokeswoman, declined to comment.

Many Banks

Investors also named as defendants Deutsche Bank AG, BNP Paribas SA, HSBC Holdings Plc, Royal Bank of Scotland Group Plc, Credit Suisse Group AG, UBS AG, Goldman Sachs Group Inc., Nomura Holdings Inc., Wells Fargo & Co. and JPMorgan Chase & Co.

Read on.

UBS rates bankers’ behavior in performance review revamp: sources

Swiss bank UBS has begun scoring employees specifically on their behavior, meaning year-end bonuses could be affected by whether they act ethically or are team players, two sources familiar with the policy said on Monday.

UBS, Switzerland’s biggest bank with around 60,000 employees worldwide, began last year giving staff a grade of one to five on their behavior, the criteria for which include integrity and collaboration.

Behavior counts for around 30 percent of employees’ performance reviews, which also reflect the overall quality of work and form the basis of bonus rewards.

For the previous two years, behavior was a factor in the reviews but employees were not given a separate score for it.

Read on.

DOJ’s Swiss Bank Program Closes Out With Final $50M Deal

Law360, New York (January 27, 2016, 5:01 PM ET) — The U.S. Department of Justice locked in its final deal under its Swiss Bank Program Wednesday, with a bank formerly owned by UBS AG agreeing to pay $49.8 million to avoid prosecution for helping clients dodge the IRS.

The DOJ unveiled the Swiss Bank Program in August 2013 to provide a pathway for Swiss banks looking to avoid criminal charges to give up the account information of taxpayers hiding assets overseas. (Credit: Law360) HSZH Verwaltungs AG is the last of 80 banks to strike a deal…

Source: Law360