Swiss banking giant UBS will be unable to reach an out of court settlement with the French authorities over a recent €4.5 billion (approximately CHF5 billion) fine.
During the UBS annual shareholder meeting held in Basel on Thursday, Chairman Axel Weber responded to critics of the bank’s strategy to contest the French fine in court.
In February, a French court fined the bank €4.5 billion euros for illegally shopping for clients and laundering the proceeds of tax evasion. The bank has appealed the fine.
“In the past, we were able to resolve legal cases quickly and on acceptable terms, including by reaching settlements,” Weber told shareholders. “In the case of France, unfortunately, there was no acceptable way to settle out of court. Therefore, also in the interests of our shareholders, we had no choice but to go to court.”
Switzerland’s largest bank came under fire from shareholders for allegedly refusing a less expensive out-of-court settlement which would have cost around €1.1 billion. The top brass has always claimed that these were false rumours.
According to Weber, UBS has taken the decision to pursue legal action in the interests of shareholders, He remains convinced that the bank’s arguments will convince the judges when the appeal is heard.
Drop in confidence
Shareholders also refused to approve the performance of the board of directors and management. Despite being a mere formality, only 41.7% of shareholders gave a thumbs up to the top brass compared to 89.7% last year. Although there were slightly more votes in favour than against, the necessary 50% majority was not reached.
Popular Stories
More
Foreign affairs
What Trump’s return or a new Harris administration would mean for Switzerland
Should raw milk sales be banned or should consumers decide?
Swiss food regulations do not allow raw milk to be sold for direct consumption. However, a loophole allows 400 raw milk vending machines to do just that.
Is reforming the Swiss pension system still possible, and if so, how?
Solutions still need to be found to meet the challenge of an ageing population and to improve the pensions of low-paid workers, the majority of whom are women.
This content was published on
Czech President Petr Pavel and his wife, Eva Pavlova, arrived in Switzerland on Tuesday at the start of a two-day state visit.
Study shows proliferation of non-native plants is driver of insect invasions
This content was published on
A global study has revealed that insect invasions are being driven by the proliferation of non-native plants. This can can massively disrupt ecological processes, often leading to serious economic impacts.
Swiss set record for world’s longest hyperloop test
This content was published on
Swiss scientists have established a record for the longest-ever hyperloop journey at a facility in Lausanne, Switzerland.
This content was published on
The Swiss army wants to purchase new German armoured howitzers to replace its existing artillery system which has been in operation for over 50 years.
Poll suggests Donald Trump has many fans in Switzerland
This content was published on
Around a quarter of Swiss citizens would vote for Donald Trump if they had the chance, according to a recent poll. This percentage is higher than in many other European countries.
Swiss court rejects special assistance for student with disabilities
This content was published on
The Swiss Federal Court has rejected an application for special assistance from a student with disabilities at the federal technology institute ETH Zurich.
Police arrest 15 drug dealers in Verbier in southern Switzerland
This content was published on
Swiss and French police have arrested 15 suspected drug dealers operating in the mountain resort of Verbier in southern Switzerland.
New European space tech centre in Switzerland launches its first project
This content was published on
The European Space Deep-Tech Innovation Centre (ESDI), launched in collaboration with the Paul Scherrer Institute (PSI), is to be located in the immediate vicinity of the PSI in northern Switzerland.
Swiss Federal Railways launches campaign for safety on public transport
This content was published on
The Swiss Federal Railways is launching a campaign for greater respect and safety on public transport, with posters to go up in stations and on trains starting next week.
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.