Bloomberg News reported the U.S. Department of Justice has launched a full-scale investigation into sanction violations committed by Credit Suisse. As UBS merged with Credit Suisse earlier this year, it invariably falls under the authority’s spotlight, too.
The Swiss government orchestrated UBS’s emergency takeover in order to avoid a financial meltdown and the impact on the world that the collapse of Credit Suisse could have caused. UBS purchased Credit Suisse at a bargain price of $3.25bn.
UBS shares dropped by almost 8% after the U.S. Department of Justice released its report. The shares recovered to 3.4% in the negative by late afternoon.
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UBS’s latest financial report, published at the end of August, confirmed that its sanction schemes align with sanctions imposed by multiple jurisdictions. These include the United Nations (UN), Switzerland, the UK and the United States.
The report mentions that Credit Suisse branches in Britain and the Netherlands were contacted by law enforcement officials about cross-border banking, wealth management, and other issues. UBS stated further that:
Credit Suisse has reviewed these issues in the UK…
