UBS’s stock price fell by 8% on Wednesday after the Swiss bank giant was reportedly helped a Russian client in someway to evade the sanction programme. The US Department of Justice (US DOJ) launched a full-scale investigation across multiple jurisdictions, including the UN, EU, UK and US, which all had an agreement on this matter.
Credit Suisse, the scandalous, failed and took over by the bank giant that soon to be merged with UBS, is the main focus of this investigation. The bank offices across the European continent have been contacted by law enforcement, according to Bloomberg. UK, Netherland, France and Belgium are all included.
JP Morgan forecast that UBS will need $10 billion for litigation which is $6.8 billion for provision and $3.8 billion for contingent liabilities on this matter, while UBS has adjusted Credit Suisse’s valuation by $3 billion to cover the outflow from these lawsuits.
The latest price of UBS Group AG (UBSG.S) is at CHF 22.34 with a forward P/E ratio at 17, falling from the recent year-high price of CHF 23.75. Meanwhile, UBS ‘all time high price was almost CHF 71 in 2006.
