September 11, 2012 |
It pays to rat out your tax-dodging clients. A former banker who helped wealthy Americans illegally evade taxes, and later confessed his transgressions and cooperated with the government, has been awarded $104 million in what appears to be the largest-ever whistleblower case. Bradley Birkenfeld, a globe-trotting financier at Swiss banking giant UBS, helped rich Americans set up phony companies to conceal secret Swiss bank accounts. He gave them credit cards to access their hidden cash.
August 23, 2012 |
Citigroup has lined up against Nasdaq's plan to compensate brokerages that lost money in the Facebook IPO. In a letter filed with the U.S. Securities and Exchange Commission opposing Nasdaq's plan to pay $62 million to brokerages that lost money in the botched initial public offering, Citi criticized Nasdaq's "grossly negligent conduct. " Facebook's May 18 IPO was fraught with technical problems that saddled brokerages with millions in losses. Nasdaq delayed the highly hyped offering, but decided to go through with it despite technical difficulties in its systems.
December 3, 2012 |
Another major bank is reportedly nearing a huge payout to settle government investigations into rigging of key interest rates. Swiss banking giant UBS is set to fork over more than $450 million to settle claims it manipulated the London Inter-bank Offered Rate, or Libor, according to the Wall Street Journal. The British bank Barclays agreed to pay $453 million to American and British authorities to settle similar charges earlier this year. The fallout included a major shakeup that saw the departures of the bank's chairman and chief executive.
October 30, 2012 |
Swiss bank UBS will cut 10,000 jobs as it exits from its fixed-income trading business and tries to cut costs and concentrate on wealth management. The Zurich, Switzerland-based institution, which stated that it is “significantly reshaping its investment bank,” said it will bring its head count to 54,000 by 2015 from 64,000 employees currently. Some 2,000 cuts will come from UBS front-office workers who deal directly with clients. In total, that's a 16% slice off the overall workforce.
July 31, 2012 |
The cost of Nasdaq's bungling of the Facebook IPO has shot up $357 million. Swiss banking giant UBS says it lost that much from the stock exchange's "gross mishandling" of the May 18 initial public offering, the largest ever for a U.S. technology company. In a sharply worded statement, UBS said it ultimately purchased "far more shares than our clients had ordered" because Nasdaq's trading system failed to confirm UBS traders' orders. "UBS's loss resulted from Nasdaq's multiple failures to carry out its obligations, including both opening the Facebook stock for trading and not halting trading in the stock during the day," UBS said.
December 13, 2012 |
Swiss banking giant UBS may pay more than $1 billion to settle investigations into allegations that it conspired to rig key interest rates, according to published reports. The $1 billion in fines would more than double the $450 million British banking giant Barclays agreed to pay in June to settle charges that it manipulated key rates, including the London interbank offered rate, or Libor. Trillions of dollars' worth of consumer and financial products are pegged to Libor, including mortgages and swaps.