UBS

In July 2007, UBS launched its Global Asset Management division, strategically positioning itself as one of the world's premier asset management companies. This move was designed to capitalize on the bank’s extensive network and leverage its financial prowess in managing institutional investments, retail funds, and private client portfolios worldwide. The division aimed to offer comprehensive management services across asset classes, including equities, fixed income, currency, real estate, and alternative investments. This strategic initiative marked UBS’s decisive entry into the global asset management arena, helping it diversify its services beyond traditional banking and investment, which was pivotal in its global expansion plans.

During the financial crisis of 2008, UBS was implicated in a major tax evasion scandal involving U.S. citizens. To avoid prosecution, in October 2008, UBS reached a settlement agreement with United States authorities, agreeing to pay $780 million and revealing the identities of thousands of its American clients who had been evading taxes by using UBS's Swiss accounts. This marked a significant moment not only for UBS but also for Swiss banking privacy laws, as it was the first time Switzerland compromised on its traditional banking secrecy in such a manner. The settlement was a pivotal moment that led to increased regulatory scrutiny and changes in how banks managed wealthy clients’ money across sovereign borders.

As part of the settlement with the U.S. government in February 2009, UBS agreed to pay $780 million and disclose information on more than 4,000 U.S. clients who were using secret Swiss accounts to evade taxes. This unprecedented decision by UBS marked a major shift in Swiss banking practices, particularly concerning its staunch secrecy laws. The decision came amidst intense pressure from U.S. authorities and opened a new chapter in international tax regulation and cooperation between nations to curb cross-border tax evasion. This case fundamentally reshaped the global banking landscape and set precedent for international financial institutions regarding transparency and regulatory compliance.

In December 2011, UBS was one of the first banks to admit to its role in the global LIBOR scandal. LIBOR is a benchmark interest rate that affects financial products around the world, and its manipulation by several banks, including UBS, led to investigations by financial regulators in numerous countries. UBS engaged in manipulation of LIBOR rates between 2007 and 2009, where traders sought to influence rates for profit through broad collusion with other banks. As a result, UBS was fined $1.5 billion by regulators in the United States, the United Kingdom, and Switzerland. This scandal not only damaged the bank’s reputation but also necessitated comprehensive internal reforms to prevent further ethical lapses.

In October 2012, UBS announced a major restructuring plan that included cutting 10,000 jobs over three years, aiming to save 3.4 billion Swiss francs by the end of 2015. This move was driven by significant financial losses resulting from its exposure to the eurozone crisis, its investment banking sector’s declining revenues, and the aftermath of the rogue trader scandal that cost the bank over $2 billion in 2011. UBS's decision marked one of the most severe restructurings in the banking sector in response to the economic climate of the time. The job cuts were part of a strategic pivot towards wealth management and services that were less risky than investment banking.

UBS faced significant fines in 2012 for its involvement in the rate-rigging scandal, further cementing its pivotal role in financial misconduct. In December 2012, the bank agreed to pay a total of $1.5 billion to U.S., UK, and Swiss regulators over its manipulation of the LIBOR and other benchmark interest rates. This settlement was one of the largest for a global financial institution at the time and underscored the seriousness of the claims against the bank. The fines marked a turning point for UBS as it had to overhaul its management practices and compliance procedures to restore its credibility. The scandal had far-reaching implications, affecting global trust in financial institutions and the integrity of benchmark rates.

Raoul Weil, the former top wealth-management executive at UBS, was found not guilty in a Floridian court in November 2014 after a three-week trial. Weil had been accused by U.S. prosecutors of conspiring to help thousands of American clients hide billions of dollars in secret Swiss bank accounts between 2002 and 2007. Although Weil walked free, the trial unveiled extensive details about UBS's practices and the lengths to which the bank and its executives went to assist clients in tax evasion, causing significant reputational damage for UBS, even if the specific accusations against Weil did not hold in court.

In May 2015, UBS was among several major banks fined by U.S. and other authorities for their roles in the manipulation of foreign exchange rates. UBS specifically admitted to manipulating foreign exchange benchmarks and agreed to pay over $500 million in fines. The foreign exchange market manipulators from UBS were part of a wider group of traders at several banks who were found to be rigging benchmark rates across the $5 trillion-a-day forex market. As a result, UBS, alongside several peers, had to overhaul its forex trading operations and compliance procedures, heralding a new era of regulatory oversight and collaboration between global governments in policing financial markets.

On February 20, 2019, UBS was fined a total of €4.5 billion by a French court in a landmark tax fraud case. The judgment came after a protracted investigation into UBS’s practices that allowed wealthy French clients to hide funds from tax authorities. The court found UBS guilty of illegally soliciting clients and laundering the proceeds of tax evasion. This ruling was one of the largest fines ever levied against a bank by European authorities and marked a significant legal reprimand for UBS, which planned to appeal the decision. The case underscored the increasing international crackdown on banks that enable tax evasion and the challenges faced by global institutions in managing compliance with national laws.

In a landmark deal in the banking industry, UBS agreed to acquire its troubled rival Credit Suisse for a total of 3 billion Swiss francs in March 2023. The unexpected transaction was orchestrated to prevent further turmoil in the global banking sector due to the rapid deterioration of Credit Suisse's financial condition. The Swiss government initiated and assisted in this unprecedented move, highlighting the seismic importance of this consolidation between two major Swiss financial institutions. The acquisition was a result of intense negotiations, where UBS aimed to end the banking turmoil caused by Credit Suisse's financial instability, including issues such as risk management lapses and litigation costs.