MW UBS's stock hit its highest level in 16 years. The good news is the bank is about to get fined hundreds of millions of dollars.

By Steve Goldstein

UBS's stock reached a new 16-year high on Thursday after the Wall Street Journal said the bank is about to get fined hundreds of millions of dollars.

The newspaper, citing people familiar with the matter, said a settlement with the U.S Justice Department could be announced this week. It has to do with violations by Credit Suisse - which UBS bought - of a previous agreement with the Justice Department.

The Senate Finance Committee said in 2023 it uncovered major violations of a 2014 plea agreement into helping U.S. taxpayers file false income-tax returns, as its investigators said Credit Suisse concealed more than $700 million of accounts.

UBS said in its last quarterly earnings report that it has taken provisions to cover the alleged violation of the plea agreement, as well as other issues from Credit Suisse ranging from trading practices to aiding terrorism in Iraq. Total provisions amounted to $3.84 billion, and UBS said it might cost as much as $1.8 billion to cover future losses that are not covered by those provisions.

UBS shares (CH:UBSG) (UBS) rose 3% in Swiss trade. The stock is up 21% over the last 52 weeks.

-Steve Goldstein

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January 09, 2025 11:37 ET (16:37 GMT)

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