UBS shares slip after report of US sanctions probe into Credit Suisse
Shares in UBS slipped today after a report suggested that Credit Suisse is at the centre of a US probe into potential sanctions breaches.
Having started by seeking information on how accounts of sanctioned individuals were handled at a number of banks, the US Department of Justice has reportedly honed in on Credit Suisse.
According to Bloomberg, the bank has been asked for further detail on its handling of accounts of sanctioned individuals while UBS is also being investigated.
UBS shares closed 2.9 per cent lower in Switzerland having slumped just under eight per cent when the story was published earlier in the day.
The probe is at an early stage and may not result in charges or a settlement, the report said.
The investigation covers the most recent round of sanctions imposed after the Russian invasion of Ukraine as well as previous rounds put in place following the annexation of Crimea.
The investigation highlights the risks that UBS took on when it led an emergency acquisition of Credit Suisse earlier this year.
Credit Suisse was beset by a whole series of costly legal challenges, which helped contribute to its eventual collapse.
In a note, analysts at JP Morgan noted that in its half-year results to the end of June UBS had set aside litigation provisions of $4.7bn, most of which relate to Credit Suisse.
Over the past few months UBS has been seeking to settle historic claims relating to fallen lender. Earlier this year it agreed to pay a £388m fine to regulators in the UK, US and Switzerland for failings linked to Credit Suisse’s oversight of Archegos Capital.
UBS declined to comment on the report.