Legal News

Japanese Subsidiary of UBS Pleading Guilty to Fraud
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Wednesday, UBS made history by earning the dubious honor of becoming the first global bank in the last two decades to have a subsidiary plead guilty. Despite frantic efforts by bank authorities, and even with the bank’s chairman flying to Washington, the Swiss bank failed to gain any leniency, either on the $1.5 billion in fines, or in matters of criminal conduct.

The UBS has announced that to settle matters, its Japanese subsidiary would be pleading guilty to one count of felony wire fraud related with rate rigging. The only other bank so far caught in rate rigging, Barclays, had got off by paying almost one-third the fines levied on UBS.

Last week, HSBC could avert its fate by agreeing to pay $1.9 billion over allegations of money laundering. But with UBS, prosecutors have decided to set an example. Your size does not make you tough.

  
What
Where


However, the DOJ allowed the parent company of UBS to keep its charter, as long as the subsidiary pleaded guilty. Lanny A. Breuer, the head of the criminal division of the DOJ said, “We are holding those who did wrong accountable … We cannot, and we will not, tolerate misconduct on Wall Street.”

The rate rigging enquiry over the Libor rates has so far caught more than a dozen big banks minting money by rigging London interbank rates. Others waiting in the line after UBS includes both US and foreign banks like the Royal Bank of Scotland, which has already stated it would pay fines before February, and JPMorgan Chase.

While, at the beginning of negotiations with UBS a conditional immunity deal had been made with the antitrust division, the criminal division denied letting go after examining thousands of e-mails and hours of phone calls. The conduct was just too much for them to take.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Medical Malpractice Attorney

USA-CO-Denver

Hall & Evans, LLC, one of Denver\'s most recognized and respected law firms, is continuing its expan...

Apply now

Litigation Associate Attorney

USA-CO-Denver

Hall & Evans, L.L.C., one of Colorado\'s most established law firms, currently has an opportunity fo...

Apply now

Law Firm Office & Billing Administrator

USA-NY-New York City

The Law Offices of Patrick A. Mullin is a boutique tax defense and white-collar criminal defense law...

Apply now

Legal Secretary

USA-LA-New Orleans

A New Orleans litigation law firm is seeking an experienced Legal Assistant / Legal Secretary to und...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Real Estate Partner-level Attorney

USA-NY-New York City

New York City office of a BCG Attorney Search top ranked law firm seeks Senior Real Estate Partner-l...

Apply Now

Senior Staff Products Liability and Mass Torts Attorney

USA-CA-Los Angeles

Los Angeles office of our client seeks Senior Staff Products Liability and Mass Torts Attorney with ...

Apply Now

Partner-level Products Liability, Consumer Class Actions Attorney

USA-CA-Los Angeles

Los Angeles office of our client seeks Partner-level Products Liability, Consumer Class Actions Atto...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top