Swiss bank UBS (UBS) has agreed to pay a fine of $511 million to settle a criminal case brought against former rival Credit Suisse for its role in helping American taxpayers hide more than $4 billion in offshore accounts.
According to the U.S. Department of Justice, Credit Suisse helped Americans hide billions of dollars in at least 475 numbered bank accounts over the years. UBS acquired Credit Suisse in 2023 for $3.2 billion and has since absorbed the failed lender.
The U.S. Justice Department says Credit Suisse conspired with “ultra-high-net-worth and high-net-worth individual clients” to help them hide money from Uncle Sam. Specifically, Credit Suisse helped wealthy Americans evade their U.S. tax obligations between 2010 and 2021.
“In doing so, Credit Suisse AG committed new crimes and breached its May 2014 plea agreement with the United States,” said the U.S. Justice Department in a news release announcing the $511 million settlement.
Failed Bank
In a statement of its own, UBS said that it was “not involved in the underlying conduct and has zero tolerance for tax evasion… With this resolution, UBS is pleased to have resolved another of Credit Suisse’s legacy issues.”
Credit Suisse was taken over by UBS following years of financial losses and trading scandals. Credit Suisse had lost nearly 40% of its deposits in late 2022 as clients pulled funds from the troubled lender. It reported a full-year net loss of $7.86 billion in 2022 before the Swiss government stepped in and brokered a takeover by UBS.
Is UBS Stock a Buy?
The stock of UBS has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on five Buy, five Hold, and one Sell recommendations assigned in the past three months. The average UBS price target of $36.76 implies 19.47% upside from current levels.
