The biggest two Swiss Banks have each been fined $200 million (CHF199 million) as part of a large-scale US investigation into the failure to preserve electronic communications.
This content was published on
2 minutes
Reuters/dos
Español
es
Multa de 200 millones de dólares para UBS y Credit Suisse
The Securities and Exchange Commission (SECExternal link) and the Commodity Futures Trading Commission (CFTCExternal link) said in separate statements on Tuesday that they had fined 16 financial firms a combined total of $1.8 billion after staff had discussed deals on their personal devices and apps. Beyond the two Swiss banks, the groups involved include Barclays, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley.
More
More
UBS chief under pressure to deliver as markets turn
This content was published on
Troubles at rival bank Credit Suisse have over-shadowed UBS hiccups, such as the aborted acquisition of tech company Wealthfront.
Investigators said that from January 2018 to September 2021, the banks’ staff routinely communicated about business matters such as debt and equity deals with colleagues, clients, and other third party advisers using applications on personal devices such as text messages and WhatsApp.
The institutions did not preserve the majority of those personal chats, violating US rules which require brokers and financial institutions to keep records of business communications. That likely impeded the agencies’ ability to gather evidence in other, unrelated investigations, they said.
Trust issue
“Finance, ultimately, depends on trust. By failing to honor their recordkeeping and books-and-records obligations, the market participants we have charged today have failed to maintain that trust,” said Gary Gensler, the chair of the US Securities and Exchanges Commission.
“Today’s actions – both in terms of the firms involved and the size of the penalties ordered – underscore the importance of recordkeeping requirements: they’re sacrosanct. If there are allegations of wrongdoing or misconduct, we must be able to examine a firm’s books and records,” said Gurbir Grewal, Director of the SEC’s Division of Enforcement.
The institutions, which cooperated with the investigation, have begun implementing improvements to their compliance policies and procedures, the SEC said.
According to the Reuters news agency, a UBS spokesperson said the bank was pleased to have resolved the matter; Credit Suisse declined to comment.
What do you think Switzerland’s Alain Berset can bring to the Council of Europe?
The former interior minister is to become the first Swiss Secretary General of the Council of Europe – which issues should his five-year term focus on?
How is your country dealing with the return of stolen artifacts?
Western nations like Switzerland often have to deal with the process of recovering or returning looted artifacts which have been illegally imported. What’s the situation like in your country?
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss banks implicated in trading cartel investigation
This content was published on
The European Commission has wrapped up an investigation of five banks, including UBS and Credit Suisse, who colluded in a foreign exchange trading cartel.
Credit Suisse forced to address restructuring concerns
This content was published on
Troubled Swiss bank Credit Suisse seeks to quieten speculation about its upcoming strategic revamp following leaks to the media and staff concerns.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.