UBS to Pay $230 Million to Settle Mortgage-Backed Securities Probe

UBS to Pay $230 Million to Settle Mortgage-Backed Securities Probe

UBS will pay $230 Million to settle mortgage-backed securities probe in New York.  The settlement covers mortgage-backed securities issued between 2006 and 2007, with notional amount exceeding $10 billion.  Investors had lost billions of dollars in the certificates, backed by the loan pools (mortgage-backed securities).

” UBS Pays $230 Million to Settle Mortgage-Backed Securities Probe ”

UBS had ignored advisory issued during the due diligence process, and had breached its underwriting guidelines. The bank had admitted in the settlement prospectus supplements did not fully explain the bank’s due diligence process.  The $230 million settlement includes $189 million in consumer relief and $41 million in cash for the New York State.

Recent Settlements:

  • Royal Bank of Scotland – $500 million
  • JPMorgan Chase & Co. – $1 billion
  • Bank of America Corp. – $800 million

Source: Bloomberg, Reuters

 

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About UBS

Headquartered in Zurich and Basel, the UBS Group is a global firm providing financial services to private, corporate and institutional clients. The UBS Group is present in all major financial centers and has offices in over 50 countries. The UBS Group employs approximately 60,000 people around the world. The UBS Group’s historical roots stretch back more than a century.

Visit: UBS

 


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UBS Appealing Against 18 Months IPO Lead Sponsor Suspension in Hong Kong

UBS Appealing Against 18 Months IPO Lead Sponsor Suspension in Hong Kong

UBS in Hong Kong is appealing against the 18 months suspension for IPO lead sponsors by Hong Kong’s securities regulator, Securities and Futures Commission (SFC).  This was disclosed in its annual report, and the Swiss bank is appealing against the decision.  The bank was also handed a fine of HK$119 million ($15.18 million) alongside the 18 months suspension.

“ UBS in Hong Kong Appeals against 18 months IPO sponsor suspension “

SFC had been investigating UBS role as a sponsor of IPOs listed on the Hong Kong Stock Exchange.  UBS and Standard Chartered had sponsored China Forestry IPO in 2009, but in 2011, the company has been suspended for possible accounting irregularities.  China Forestyy is in liquidation and has been delisted from the Hong Kong Stock Exchange.  In 2017, SFC had decided to drop lawsuit against Standard Chartered and UBS over the 2009 IPO.    Standard Chartered sponsorship desk had since shut down.

If the appeal fails, UBS is still able participate as joint global coordinator, though the lesser role will also means a significant reduction in investment banking fees.

Sources: Reuters, SCMP

 

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About UBS

Headquartered in Zurich and Basel, the UBS Group is a global firm providing financial services to private, corporate and institutional clients. The UBS Group is present in all major financial centers and has offices in over 50 countries. The UBS Group employs approximately 60,000 people around the world. The UBS Group’s historical roots stretch back more than a century.

Visit: UBS

 


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Singapore’s Sovereign Wealth Fund Cuts Stake in UBS

Singapore’s Sovereign Wealth Fund Cuts Stake in UBS

Singapore’s sovereign wealth fund GIC has cut its stake in UBS by almost half and has stopped being the biggest shareholder in UBS after saying it was “disappointed” it lost money for almost a decade in which it was vested in UBS. GIC sold 93 million UBS shares, effectively halving its stake in the Swiss lender from 5.1 per cent to 2.7 per cent.

“GIC sold 93 million UBS shares, effectively halving its stake in the Swiss lender from 5.1 per cent to 2.7 per cent.”

~ South China Morning Post

GIC was among the sovereign funds to inject money into struggling banks during the financial crisis. GIC took a 9 percent stake in UBS in 2007 via an emergency capital injection when UBS unveiled $10 billion worth of subprime write downs.

Related Reports: Bloomberg, South China Morning Post

About GIC

GIC is a disciplined long-term investor. We have the patient capital and fortitude to ride out short-term market fluctuations, a global presence with offices in 10 cities around the world, a broad-based portfolio spanning six core asset classes and various active skill-based strategies, and a skilled and experienced team of over 1300 people.

Visit: GIC

 


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Former Billionaire Lost $500 Million in UBS Margin Call

 Former Billionaire Lost $500 Million in UBS Margin Call

Former China billionaire Guo Wengui who is wanted in China due to bribery accusations lost about $500 million as a result of a margin call from UBS. Guo had left China due to a corruption investigation and in 2015 secretly bought a luxurious apartment for $67.5 million in Manhattan’s Sherry-Netherlands Hotel.

“Former China billionaire Guo Wengui who is wanted in China due to bribery accusations lost about $500 million as a result of a margin call from UBS.”

~ Forbes

Guo’s investment loss was due to an investment in Haitong Securities shares. Shares of Haitong Securities surged in 2015 and then plunged amidst a huge market sell off.  Last week, Pacific Alliance Asia Opportunity fund sued Guo in New York and claimed that he owed the hedge fund $88 million.

Related Report: Forbes


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Banks Considering Local Wealth Management Business in Argentina

Banks Considering Local Wealth Management Business in Argentina

UBS, Julius Baer, Grupo BTG Pactual are among the banks considering a local wealth management business in Argentina. There are estimates that the government’s tax amnesty program could bring back as much as $16 billion back to the country.

“There are estimates that the government’s tax amnesty program could bring back as much as $16 billion back to the country. “

~ Bloomberg

The government’s tax-amnesty program, announced in May, attracted $4.6 billion in cash through last week. Under the tax amnesty program, Argentines who come clean on their untaxed savings by March 31 will pay a one-time fine of as much as 15 percent. They can also invest in three-year and six-year Treasury bonds or make long-term investments in businesses or closed-end mutual funds.

Related Reports: Bloomberg, Wealth-X

 

About Grupo BTG Pactual

BTG Pactual Group’s seven business units are:

  • Investment Banking. Financial advisory and capital markets services;
  • Corporate Lending. Financing, structured credit and loan guarantees to corporations;
  • Sales and Trading. Financial products and services to a diverse group of clients in local and international markets, including market-making, brokerage and clearing services, and derivatives, interest rate, foreign exchange, equities, energy and commodities transactions for hedging and trading purposes;
  • Asset Management. Management services with a broad range of products across major Brazilian and international asset classes to Brazilian and international clients;
  • Wealth Management. Investment advisory and financial planning services and investment products to high net worth individuals, or HNWI;
  • Banco Pan. Commercial and consumer banking business conducted through Banco Pan, an independent Brazilian bank that BTG Pactual Group co-controls since mid- 2011. It focuses on anting automobile loans, direct consumer loans and payroll deduction lograns, primarily to low- and middle-income individuals, in addition to middle market loans and mortgages to corporations in Brazil; and
  • Principal Investments. Capital investments with respect to a broad range of financial instruments, including merchant banking and real estate investments in Brazil and investing in a variety of financial instruments in global markets, which investments are primarily managed by BTG Pactual Group’s asset management unit.

Visit: BTG Pactual

 


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Standard Chartered Faces Sanctions on Hong Kong IPO

Standard Chartered Faces Sanctions on Hong Kong IPO

Standard Chartered is facing potential sanctions from Hong Kong authorities over the handling of its stock market flotation. The Hong Kong Securities and Futures Commission warned that it is intending to take action against the bank related to an IPO in 2009. It is thought to be for the share sale of China Forestry which is being liquidated.

“Standard Chartered is facing potential sanctions from Hong Kong authorities over the handling of its stock market flotation.”

~ The Guardian

Standard Chartered had worked alongside UBS for the flotation and it is also being investigated by the SFC for its role in a number of local IPOs.

Related Reports: The Guardian, The Telegraph

 

About Standard Chartered

Standard Chartered Bank was formed in 1969 through the merger of two separate banks, the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. These banks had capitalised on the expansion of trade between Europe, Asia and Africa.  We’re one of the world’s most international banks, with over 1,200 branches, offices and outlets in 71 countries across the globe.

Visit: Standard Chartered


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UBS Plans to Launch Digital Wealth Management Platform in UK

UBS Plans to Launch Digital Wealth Management Platform in UK

UBS will be launching a new digital platform to provide online wealth management advice for clients in Britain. It will introduce SmartWealth product next month, with the full platform rolled out in 2017. This provides real time advice online for customers with a minimum 15,000 pounds to invest.

“This indicates a big step by UBS, the world’s largest private bank into digital wealth management.”

~Reuters

This indicates a big step by UBS, the world’s largest private bank into digital wealth management. The project is part of a global drive to expand the bank’s wealth-management business, in particular by taking advantage of advances in digital technology.

Related Reports: Reuters, Bloomberg

 

About UBS

Headquartered in Zurich and Basel, the UBS Group is a global firm providing financial services to private, corporate and institutional clients. The UBS Group is present in all major financial centers and has offices in over 50 countries. The UBS Group employs approximately 60,000 people around the world. The UBS Group’s historical roots stretch back more than a century.

Visit: UBS


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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Europe Bankers Set to Lose $2.5 Billion of Bonuses in Stock Rout

Europe Bankers Set to Lose $2.5 Billion of Bonuses in Stock Rout

Investment bankers at Europe’s securities firms have been watching their bonuses decline. A rout in financial stocks this year has wiped more than $2.5 billion from the value of deferred shares that were paid as bonuses in the past few years at Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG and UBS Group AG.

“Awards for staff at Credit Suisse have plunged by more than 1.2 billion Swiss francs ($1.2 billion).”

~Bloomberg

Awards for staff at Credit Suisse have plunged by more than 1.2 billion Swiss francs ($1.2 billion) on a 42 percent drop in shares this year. Bonuses have fallen across Wall Street’s largest firms as revenue shrank.

Related Reports: Bloomberg, Wealth X

 

About Credit Suisse

Founded in 1856, we today have a global reach with operations in over 50 countries and 48,200 employees from over 150 different nations. Our broad footprint helps us to generate a geographically balanced stream of revenues and net new assets and allows us to capture growth opportunities around the world. We serve our clients through three regionally focused divisions: Swiss Universal Bank, International Wealth Management and Asia Pacific. These regional businesses are supported by two other divisions specializing in investment banking capabilities: Global Markets and Investment Banking & Capital Markets. The Strategic Resolution Unit consolidates the remaining portfolios from the former non-strategic units plus additional businesses and positions that do not fit with our strategic direction. Our business divisions cooperate closely to provide holistic financial solutions, including innovative products and specially tailored advice.

Visit: Credit Suisse

 


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Monetary Authority of Singapore to Take Action Against DBS, StanChart & UBS in 1MDB Probe

Monetary Authority of Singapore to Take Action Against DBS, StanChart & UBS in 1MDB Probe

Singapore authorities said they have found lapses in anti-money laundering controls including DBS and the Singapore branches of Standard Chartered Bank and UBS and will be taking action against them. They also added that bank accounts which belong to several individuals have been seized and dealings in properties belonging to these individuals have also been curtailed. These assets amount to S$240 million.

“Singapore authorities said they have found lapses in anti-money laundering controls including DBS and the Singapore branches of Standard Chartered Bank and UBS and will be taking action against them.”

~ Monetary Authority of Singapore

The MAS said the deficiencies at the banks were related to lapses in specific processes and by individual officers which would be met by the firm regulatory action. MAS also mentioned that the inspections did not find any pervasive weakness or staff misconduct.

Related Reports: MAS, CNBC

 


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DBS, Falcon & UBS face Singapore Scrutiny Over 1MDB Transactions

DBS, Falcon & UBS face Singapore Scrutiny Over 1MDB Transactions

Singapore central bank is analyzing several banks including UBS & DBS Group Holdings to see if they had broken any regulations in handling transactions linked to Malaysian state fund 1MDB. The Monetary Authority of Singapore is looking at different aspects of the banks operations. The probe could lead to fines and other penalties if lapses are found.

“Singapore central bank is analyzing several banks including UBS & DBS Group Holdings to see if they had broken any regulations in handling transactions linked to Malaysian state fund 1MDB.”

~ Bloomberg

Singapore faces pressure to show that banks in the city-state are complying with increasingly tough anti-money laundering rules around the world. While the United States has imposed hefty fines on banks for lapses related to money laundering, tax evasion and international sanctions.

Related Reports: CNBC, Business Times

 

About DBS

Headquartered and listed in Singapore, DBS is a market leader in Singapore with over four million customers and also has a growing presence in the three key Asian axes of growth, namely, Greater China, Southeast Asia and South Asia. With over 280 branches across 18 markets in Asia, we are the largest bank in Singapore and Southeast Asia.

Visit: DBS


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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