UBS Group AG (UBS) Quote

How Gold & Silver Leasing Hides Shortages $UBS

UBS's auditor warns over bank's financial reporting controls
📰 News
Summary

Bank's auditors expressed "adverse opinion"

UBS mentions "increased complexity" of internal accounting

Credit Suisse had material weakness before it imploded

LONDON, March 17 (Reuters) - UBS's (UBSG.S), opens new tab auditors have expressed an "adverse opinion" on the bank's internal controls over its financial reporting for 2024 after it failed to resolve issues related to misstatements inherited from Credit Suisse, the Swiss lender said on Monday.

An adverse opinion - a rare rebuke for a global bank - is generally understood to be a warning to investors that indicates that a company's financial statements could be misrepresented, misstated, and do not accurately reflect its financial performance and health.

UBS has been working to resolve issues in Credit Suisse's internal controls and said last year it was still reviewing potential misstatements after acquiring the lender in a government-orchestrated rescue in 2023.

In its annual report published on Monday, UBS said that following the merger of the two banks last year, it could no longer exclude Credit Suisse from its assessment and that it needed more time to resolve the problem.

"As of 31 December 2024, UBS's internal control over financial reporting was not effective because of the material weakness" related to the Credit Suisse business, the Zurich-based bank said.

Ernst & Young, re-elected as UBS's auditor last year, said in its assessment on Monday that because of the effects of this weakness, it had concluded that UBS had "not maintained effective internal control over financial reporting" as of end-2024.

"It's one of the many legacy issues from the Credit Suisse takeover that need to be addressed," said Vontobel analyst Andreas Venditti. The auditor's warning and UBS' financial reporting issues highlight the enormous challenges the bank faces in integrating Credit Suisse - the biggest banking merger since the 2008 global financial crisis.

Earlier in January, it came close to losing a licence to continue managing U.S. retirement plans over a paperwork error linked to the Credit Suisse integration.

PENDING ISSUES

UBS said it had concluded there was material weakness due to "the increased complexity of the internal accounting and control environment", as well as its ongoing migration efforts and the limited time to show its post-merger integrated control environment was working as it should.

The bank added that since the acquisition, it has executed a remediation program to address the weaknesses and has implemented additional controls and procedures.

It said the remaining material weakness relates to the risk assessment of internal controls. It did not elaborate further on when it aims to fully remediate the issues and any related costs.

A spokesperson for the bank declined to comment further. A representative for the Swiss Financial Market Authority (FINMA) declined to comment on the auditor's warning and said it is in "intense contact" with UBS over the integration with Credit Suisse.

Before its rescue, Credit Suisse and U.S. authorities had engaged in a months-long debate over the severity of the bank's reporting deficiencies.

In 2022 the U.S. Securities and Exchange Commission was questioning how Credit Suisse had booked a series of cash flows under its former Chief Financial Officer David Mathers, including share-based compensation, and whether the issues needed to be further escalated.

In mid-March 2023 its finance director Dixit Joshi, who succeeded Mathers in late 2022, told U.S. regulators that Credit Suisse's control deficiencies had "remained un-remediated for several years" and that the bank was reassessing the issues.

A week later the bank imploded, and the issues landed on the desk of UBS's CFO Todd Tuckner.

Credit Suisse's 2022 annual report contained explicit warnings from its auditor PwC on the effectiveness of the bank’s internal controls over financial reporting for that year.

Original source: Reuters

See also:

Why the Situation of UBS is very dangerous

DTCC a9569

As a result, effective March 21, 2025, UBS Securities LLC (#0642) will assume all open contracts for Credit Suisse Securities (USA) LLC (#0355), which are to be cleared or settled through or by National Securities Clearing Corporation.

Citi and UBS raise their gold targets to $3,000 on tariffs, central bank buying and safe-haven demand $UBS

@BossBlunts1
BREAKING NEWS 🚨

🔥 THE DOJ HAS INITIATED A CRIMINAL INVESTIGATION INTO BANKS WHICH COLLUDED TO UNWIND THEIR PORTION OF ARCHEGOS' TRADES per Bloomberg.

Speculation remains high that #UBS still maintains a vast amount of Archegos' swaps with a vast number of short positions against meme stocks like Gamestop and AMC Theatres as legacy costs from their acquisition of Credit Suisse.

UBS to close dozens more branches. Pimping Fake Shares continues.

Happy Birthday Boo Boo!... Lol

Cheers & GLTY

UBS share price DOUBLE TOP BREAKOUT today, on 12-July-2024. GLTA

Opportunity!

Markets think Sergio is full of it:

UBS Group CEO Sergio Ermotti

Loss Absorbing Capacity - 200 Bn. Wtf is that about?

They report on the 6th. Prolly why least affected, imho!

Least impacted by Aozora news. Looks like best to short. Gap down at the open. Check volume EOD.

UBS Group AG $UBS Total Debt (mrq) $649.4B

Price is extended. Their desperate. Putting out articles about how low the short interest is. Many downside gaps to Phil. PUTS. Pick a strike. IMHO!

Goldman Sachs raises 12-month gold price target to $2,050 as precious metals such as Silver, Platinum and Rhodium metals soar. $UBS

Huge Pump and now, The Dump! Run Fast.

This scam bank is insolent.

Chart Analysis. September 20, 2023. Philled!

White collar criminals...

JAR Capital

UBS saved Credit Suisse...not!

Who's bullish on banking?

Say what?

Blowout earnings?

Big WTF

Article about 'how much dumb money is still out there'. My guess is 'plenty'!

Suckas

Izland lasrever. Get shorty!

Lodas: Thanks for the info. That is interesting and positive news. Cheers and GLTY

there is a story out today that the super rich in Russia have moved, and are moving their assets into european banking to protect them....Credit Suisse is known to be the bankers for the wealthy , and I would be surprised if money was not going there...the earnings were up with the integration of CS, and a long upward movement in the stock price has started after many years being in the dump.... cheers... Lodas

UBS share price is doing fine. The UBS chart is looking good, share price on a rising path since July.

The value of my CS shares that were bought by UBS are now almost close to cover all the loss I incurred with CS shares. That's good news for me.

Cheers & GLTY & GLTA

Not a peep about gold in the article.

There may be hope, for USB and CS

Top Brass from Central Banks have been being removed
by White Hat Worldwide Alliance shake-up. Banks are
keeping their mouth shut while restructuring.

Gold is the standard again and the wise guys are cleared out.

Gold price is weights and measures with demand. Fiat Manipulation is over!
Certificate notes will only be printed based on registered and vaulted supply.

Gold and Silver will rocket especially Silver as there is no substitute for Silver
and it's used in just about everything now days from cars to computers.

"NEW YORK, Aug 4 (Reuters) - UBS Group AG (UBSG.S) is poised to make sweeping changes to the senior ranks of its investment banking division globally as soon as Monday, marking a new milestone in the process of integrating Credit Suisse, people familiar with the matter said.

The changes are aimed at producing unified teams following the completion of UBS's emergency takeover in June of Credit Suisse.

The changes are broad and involve several dealmaking groups, including healthcare, consumer/retail, financial sponsors and equity capital markets, the sources said.

Under the shake-up some Credit Suisse bankers will take on bigger roles in the combined company while some others leave, the sources said. Some UBS bankers will leave the firm as a result of the reshuffling, the sources said.

The restructuring is the latest move by CEO Sergio Ermotti to integrate UBS and Credit Suisse in a process that the bank has said would be painful, with tens of thousands of jobs hanging in the balance."

Logos of Swiss banks UBS and Credit Suisse are seen on an office building in Zurich, Switzerland March 19, 2023. REUTERS/Denis Balibouse



One of the team heads who is in discussions about potentially exiting is UBS's global head of consumer products and retail deals, Jeff Rose, two of the sources said. Jon Levin, who has served as Credit Suisse's head of retail investment banking, is in talks to replace him, the sources added.

Matt Eilers, UBS's global head of financial sponsors, is also in talks about possibly leaving, two of the sources said. Rob DiGia, UBS's global head of healthcare, will remain with the bank and is in talks about assuming a chairman-level role, according to two separate sources among those familiar with the matter.

The sources cautioned that the changes have not been finalized and details of restructuring remained in flux. They asked not to be identified ahead of an official announcement. Rose, Levin, Eilers and DiGia did not respond to requests for comment. A UBS spokeswoman declined to comment.

Reuters reported earlier on Friday on the reshuffling of one of the teams, UBS's technology, media and telecommunications (TMT) group. The bank is in talks to name Laurence Braham, who joined the Swiss bank from Barclays Plc (BARC.L) earlier this year, as global co-head of technology, people familiar with the matter said.

His co-head would be Christian Lesueur, who has been global head of TMT investment banking, the sources added. Steve Pettigrew, who just joined UBS from Bank of America Corp (BAC.N), would be leading software M&A under Braham, according to the sources. Neil Meyer, who worked alongside Braham at Barclays and followed him to UBS, would co-lead media and communications dealmaking globally alongside Lesueur, the sources said.

UBS has been trying to regain dealmaking market share. It ranked eighth in Refinitiv's global mergers and acquisitions league table in the first half of 2023, down from sixth a year earlier. In the Americas, UBS was 14th in the first half, down from seventh a year earlier.

UBS's savings targets and indications from insiders and analysts suggest it might be looking at cutting about a third of the combined group's global workforce, or some 30,000-35,000 jobs, Reuters reported on Thursday.
Reporting by Abigail Summerville, Milana Vinn and David Carnevali in New York; Editing by Leslie Adler

https://www.reuters.com/business/finance/ubs-nears-major-investment-bank-restructuring-sources-2023-08-04/

Thanks for the information. I happen to be a CS shareholder. However, I a modest number of shares. Few of larger companies and their shares I owned have gone bankrupt on me for much larger ownership of their shares. C'est La Vie. GLTA

Falling Knife coming. UBS is insolvent. CS Mistake will take both corrupt manipulators to the grave.





By the end of the year, this place will be full.

Does it really matter? Both will gone, shortly.

People get investing news from MSNBC????? Since when? Are they getting investing tips from "The View" also?
MSNBC is pumping this pig. Coming falling knife.
Make no mistake about it.


oh smack maybe you're right! Drew Barrymore was just pumping NWBO and DBMM and AABB on her show just now!

MSNBC is pumping this pig. Coming falling knife.

Make no mistake about it.

Good Luck

I see another Wamu type of court-fest that we will be watching for the next 20 years. See you in the year 2043. Most likely I will be dead or won't care. I barely care as it is.

UBS = U Bin Screwed Look for lawsuits from the $17B in CS bondholders who were wiped ~OUTT while common stock holders gott something. Conventionally, all bond creditors are senior to common stock. These wiped ~OUTT bondholders are likely to challenge this deal in court(s) - Suisse and USA and UK courts to block this deal. The bondholders will contend that the $3B should have gone to the bondholders, nott common stock. Or the bondholders should be allowed to CONvert their bonds to equity which would be $17B of new common stock issued to them, diluting the shit ~OUTT of existing CS common stock to essentially worthless.

Wow! That escalated quickly! From $CS could get $14, to $6, to a poison pill for it's buyer, UBS, all in two days. Yikes!

UBS: badd company -----> terrible company

This issue craters this week. It is like a struggling swimmer having a boat anchor tied around his neck - that is what the CS merger is.

As JOHN QUINN stated: "When you glue two rocks together they just sink faster"

UBS shareholders should be uber-pissed that SNB forced UBS into this shit sandwich. Brutal dilution in exchange for CS which has no real residual value and a negative book value.

What a gyp!

So UBS takes on Credit Suisse CS - is this the ultimate poison pill. Will see. Everything could be meat pretty soon.

This scam stock is going nowhere! MSNBC pumping Talking heads are selling viewers a line of pure bull shit. The bank is crashing.

This scam bank and partner in crime Credit Suisse are both being phased out and are going to need to merge to stay alive or go insolvent. The days of the corrupt Central Banks are coming to an end.

Strong Sell!

They maxed out the float like CS preparing for the end.

Fiat system being replaced with return of the gold standard.

Know This Trade Level For This Leading Regional Bank Stock

Since the start of November, leading regional bank stock, U.S. Bancorp (NYSE:USB), has been pulling back on the charts. On November 2, 2017, USB stock traded as high as $55.08 a share, today the stock is trading at $52.02 a share. The one negative for the stock is that it is trading below its 50 and 200-day moving averages. This chart formation tells us that the stock is vulnerable to lower prices in the coming weeks.

Traders must now watch the $49.00 area as the next major chart support level. This level was defended in September 2017 by the institutional money and it should be defended again when it is retested. It is always important for traders to know where they are wrong, so I would place a stop-loss below the $47.00 level using a weekly chart close. The upside targets for USB stock would be $55.00 as a first target and ultimately $60.00 a share as the final target.



Nicholas Santiago
InTheMoneyStocks

Beware of your paper Gold PHYSICAL METALS STAMPEDE coming up

HSBC sold fake Gold and Silver from Chile's PASCUA LAMA PONZI SCAM of Barrick and are GOLD + SILVER LESS plus cash less after conned by barrick and its team of financial terrorists.

HSBC selling royalties and making loans on Gold that BARRICK never owned!!

Holding the bag my hearties? you are in good company many banks are now sued and involved in Chile in the CRIMINAL RACKET PASCUA LAMA... wow

CREDIT SUISSE 35 million USD scam to steal PASCUA LAMA with Barrick and NEWMONT failed and they have a Chile Tribunals call with HCBC Scotia bank Deutsche Bank AG JPM the lot.... ah...private banker ANDRONICO LUKSIC of BANCO DE CHILE is one of the scammers at the center of the FINANCIAL TERRORISM

Credit Suisse tampered with the file for the benefit of Barrick via a NEW YORK LAWYER

MOTLEY'S settled an INSURANCE FRAUD with Barrick trying like SILVER WHEATON to fabricate title at PASCUA LAMA as done by barrick via PASCUA LAMA PROTOCOL in fabrication of mining titles that BARRICK never owned or had.

Big correction of GOLD + SILVER SHORTS in physical metals coming right up and at ya.

FULL STORY and maps

https://pascuachile.wixsite.com/mysite

1.05USD + 0,000001 contracted interest contract. below

https://pascuachile.wixsite.com/mysite-1

Look at the chart, alerts confirmed!!!$

Tell me what is so good about this company.

Get over yourself!

This will run big time!!!$$$

Quiet forum for such an excellent company!

The govt. should remove their license to operate in the US because of fraud upon customers and the inability of this company to supervise their traders.

That is the way they operate. I worked there and I know, greed is the only thing that drives them. No commitment to their employees, shareholders, society. A few thugs run the place. Beware this is a poorly run company, and you will always find negative news on them and loss on stockholder value.

Yeah.......between nite and ubss, it's a toss up.......et z

UBSS biggest POS out there....et z

I agree. They are greedy and hurt small legitimate companies by manipulating stock only to satisfy their own greed.

I agree. Greed is the name of the game for UBS and they don't care how they go about making more money. It is a disgrace how they have naked shorted GOSY stock when the company is trying to do good for many people. All JMO of course.

Does UBS FACILITATE rather than REGULATE?

A 2011 article:


Dec. 14 (Bloomberg) -- UBS AG’s wealth-management unit in London had no controls to prevent unauthorized trading in client accounts, according to a lawyer for a former trading desk head challenging a 1.25 million-pound ($1.93 million) fine.

UBS “was to some extent complicit” in Sachin Karpe’s unauthorized trades because “senior managers” were copied on e-mails about some client accounts, Karpe’s lawyer, Michael Blair, said at a court hearing in London this week. An external auditor’s review, commissioned by the bank, determined there were no controls to prevent internal unauthorized transfers or loans between clients of the bank unit, Blair said.

“He did not circumvent controls because there were none in place,” Blair said. “If there were no rules, he could not have been proved to be doing anything wrong.”

The case is one of three challenges by individual UBS bankers to Financial Services Authority enforcement actions stemming from the unauthorized trades. Zurich-based UBS in 2009 paid an 8 million pound-fine and agreed to reimburse customers $42.4 million.

Karpe, who is also accused of moving money between client accounts to hide losses from unauthorized foreign-exchange trades and helping a client use an offshore investment fund in violation of Indian law, is challenging the FSA fine at a court hearing that began Dec. 12.

Asia-2 Desk

Karpe, who was fired from his post overseeing Indian clients on the Asia-2 desk, accepts that he deserves a lifetime ban from working in Britain’s financial services industry, Blair said.

“That’s quite a considerable scalp for the FSA and it’s not being challenged,” Blair said. The fine isn’t an “appropriate penalty” because it would bankrupt Karpe, he said.

Karpe and his desk made as many as 50 unauthorized trades a day over a two-year period, according to the FSA. Over a one- year period from 2006 to 2007, he placed 1,404 foreign-exchange trades with values of $11.3 billion, 4.3 billion pounds, 1.9 billion euros ($2.5 billion), 109 billion Japanese yen ($1.4 billion), and 1.1 billion Swiss franc ($1.1 billion), the regulator said in court documents.

The trades were discovered after a UBS whistle-blower reported a $5,000 transfer from a customer account to Karpe’s personal bank account in 2007, the FSA said. The bank began a review that led to Karpe being fired in early 2008.

Certain Weaknesses

A UBS spokesman said the bank has “acknowledged that there were weaknesses in certain aspects of Wealth Management U.K.’s control environment.”

Karpe is also accused of using one of the bank’s accounts “to route internal transfers between client accounts to conceal the identity of the transferor and transferee accounts.”

There was “a defective system within the bank” that gave Karpe the ability to use the account “without much difficulty,” Blair said.

Laila Karan, a former client adviser on the desk who was fired for gross misconduct, is also a defendant in the case. The FSA is seeking to fine her 90,000 pounds and ban her from working in the industry for not notifying the bank about Karpe’s actions.

‘Escalated’

“Karan was never an insider on Mr. Karpe’s activity,” her lawyer, Hodge Malek, told the tribunal. “She accepts that the little she did know she should have escalated.”

Another defendant who worked on the desk, Jaspreet Ahuja, will settle with the FSA, said Jonathan Crow, the regulator’s lawyer.

The regulator is also attempting to fine John Pottage, the former chief executive officer of the wealth management unit, 100,000 pounds ($156,000) for failing to prevent the unauthorized trades. Pottage, who is now a senior executive at the bank’s headquarters in Zurich, went to trial last month to challenge the regulator.

The case is an instance of risk-management failures at the bank, several years before Kweku Adoboli, a former trader in UBS’s investment bank, was charged with causing $2.3 billion in losses through unauthorized trading. Adoboli, who was charged with fraud and false accounting tied to the loss, may enter a plea at a London criminal court next week.

--Editors: Anthony Aarons, Christopher Scinta

To contact the reporter on this story: Lindsay Fortado in London at lfortado@bloomberg.net.

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.




http://www.businessweek.com/news/2011-12-15/ex-ubs-trader-says-bank-had-no-unauthorized-trading-controls.html