UBS allotted 1.9 billion dollars during the third quarter and it is for the probable legal costs. Also, it mentioned that it was having transactions with the Department of Justice of the U.S. about having an investigation about the rigging within the currency market resolved.
The rising number of legal reserves shows that the largest bank in Switzerland is having struggles in moving on from its previous scandals. This includes a settlement worth 1.5 billion dollars for rigging interest rates, as well as 885 million dollars for the settlement of claims saying that two companies controlled by the US government was defrauded by UBS before the financial crisis in 2008.
According to Sergio Ermotti, the chief executive of UBS, mentioned to investors during a third-quarter result-related call that they all knew that there are going to be road bumps and some challenges are going to remain.
Aside from the legal set-backs, UBS’ earnings displayed health signs, especially at the flagship of its division for private banking that is catering to rich clients. Increased profitability and more money were continually brought in.
Authorities globally are having allegation investigations on concerns that some major bank traders rigged the currency market which earns 5.3 trillion dollars, the biggest in the world, but the least regulated.