Report: UBS Nears Settlement of US Case Involving Credit Suisse

Settlement and Legal Provisions - UBS is reportedly set to settle a case involving Credit Suisse, which it acquired in 2023, by paying hundreds of millions of dollars to the U S Department of Justice [1] - The case stems from Credit Suisse's failure to comply with a 2014 agreement with the DOJ, where it pledged to provide information on undeclared American-held accounts but failed to report the closure of accounts worth hundreds of millions of dollars, enabling some U S taxpayers to evade detection [2] - As part of the acquisition, UBS allocated approximately $4 billion in legal provisions to address unresolved cases against Credit Suisse [3] Merger and Integration - UBS completed its merger with Credit Suisse in June 2023, inheriting all rights and obligations of the former rival Swiss banking giant [4] - The Swiss Financial Market Supervisory Authority (FINMA) required UBS to revise its recovery and emergency plans post-acquisition, emphasizing the need to harmonize group structures, processes, and IT platforms [4][5] - UBS confirmed it had already begun implementing these changes, aligning with FINMA's requirements to enhance crisis preparedness and resolution planning [5][6] Resolution Planning - FINMA acknowledged that UBS meets current resolvability requirements under its preferred resolution strategy but emphasized the need for further development of resolution planning following the Credit Suisse crisis [6] - UBS stated it had initiated work to expand and refine its resolution plans in response to the lessons learned from the Credit Suisse crisis and its subsequent rescue [6]