UBS must stand trial instead of CS
Published: Tuesday, Sep 3rd 2024, 15:40
Back to Live Feed
UBS must appear in court in the appeal proceedings concerning Credit Suisse's "Bulgarian Connection" instead of the former competitor it took over. This was decided by the Federal Criminal Court in Bellinzona. It rejected an application by the big bank to discontinue the proceedings.
In its application, UBS argued that the takeover of Credit Suisse (CS) should have the same legal consequences as the death of a natural person. This would mean that the disappearance of Credit Suisse would also mean the end of criminal proceedings against it.
In its ruling published on Tuesday, the Federal Criminal Court stated that the merger agreement between UBS and CS not only provided for the takeover of capital, premises and personnel, but also CS's position in all court, arbitration and administrative proceedings.
European practice
The view taken by the judges in Bellinzona is in line with a decision by the French judiciary, which was confirmed by the European Court of Human Rights. It is in line with the legislation of several other European countries such as Italy, Austria, Spain, Portugal, Belgium and Germany.
The ruling is not yet legally binding. UBS can still appeal the decision before the Federal Supreme Court. In the first instance, the Federal Criminal Court sentenced Credit Suisse to a fine of CHF 2 million for failing to combat money laundering. According to the ruling, the case concerned business relationships with people associated with the Bulgarian mafia.
Penalties for CS employees
At that time, the court also ordered the confiscation of 12 million francs. The money had been deposited in accounts linked to the mafia. It ordered Credit Suisse to pay a compensation claim of 19 million francs. This corresponds to the amounts that could not be confiscated due to its negligence.
Several Credit Suisse employees received conditional or partially conditional sentences in the proceedings.
(Judgment CN.2024.18 of August 19, 2024)
©Keystone/SDA
English 
German 
French 
Spanish 
Arabic