NYT: UBS Has Impressive Record Of Attracting Scandal, Avoiding Consequences

UBS CEO Sergio Ermotti is shown speaking in Switzerland earlier this year.

The New York Times:

As the Justice Department weighs the possibility of criminal charges in the unfolding Libor rate-setting scandal, it may want to consider the record of the Swiss banking giant UBS.

At UBS, a series of immunity, nonprosecution and deferred prosecution agreements in recent years — evidently the government’s preferred approach to corporate crime — seems to have had scant, if any, deterrent effect.

Read the whole story at The New York Times

Comments

[CK Page]

02:55 AM on 07/24/2012

UBS is the Swiss bank where Romney has his cash stashed in his wife's name. UBS AG is also the bank where Phil Gramm, the ex-US Senator, has worked since 2002 when he left office. He is reportedly an adviser to "key clients." Gramm's wife once worked for and did research into derivatives markets for the Koch family's Mercatus Center. I would not be surprised to hear that UBS is also a favored bank for most wealthy Republicans in the House of Representatives.(The article says they revealed 'some' American clients hiding money, but not all American clients.) I seriously think that Mitt Romney is one of those who received a heads up as the derivatives markets crashed and he was able to profit by short selling on the way down. I think that is why he refuses to release his 2008 and 2009 tax returns. They probably show unprecedented profit during a time of economic collapse for most of the world, and that would be extremely damaging to his reputation as someone who suffered through the same market decline as other investors. Some bloggers think he is hiding not paying any taxes when his company lost value, but I think it has more to do with his private investment record than a tax embarrassment..

[moboyle110]

02:38 PM on 07/22/2012

From the NY Times piece: As the Justice Department points out in its guidelines for charging a corporation with a crime: “A corporation, like a natural person, is expected to learn from its mistakes..."

Well, the problem is corporations aren't natural persons with feelings and emotions. We've got to get rid of this concept of corporate personhood and that money is a form of speech.

[starchildjg24]

07:36 PM on 07/22/2012

If a corporation is a person, then we should be able to throw its collective behind into jail. Fines are meaningless, they make 100 times cheating what they pay in fines.

[moboyle110]

07:39 PM on 07/22/2012

Absolutely.  I agree 100 percent.

[moby49]

12:10 PM on 07/22/2012

To stop this greed and corruption, you have to hit them where it really hurts and sieze all their assets. Nothing less will work with these thieves.

[CPAwADD]

11:23 AM on 07/22/2012

The first thing the executives in companies like this will always do is agree to pay fines in lieu of their going to the hoosegow, no matter how much they deserve to go, because of this behavior will not change.

[alafonse]

09:49 AM on 07/22/2012

They're no guiltier than their crooked buddies in the banking business...and will undoubtedly buy their way out of it just like everyone else does.
Skanky banking seems to be the norm.

[Linda from Deerfield]

08:54 AM on 07/22/2012

Perhaps Swiss bank UBS has been extra immune from consequences because of hiring former Senator (R.) Phil Gramm, the instigator behind the dismantling of decades old bank regulations. I believe that he started as a vice president.

[CPAwADD]

11:23 AM on 07/22/2012

Repealing Glass-Steagall was his baby.

[ur2nutty4me]

10:57 PM on 07/21/2012

Considering no one ever goes to jail, gets punished or fined anywhere near the amount of money stolen or lost and the tax payers pick up the looses, why not buy more stocks if the price has declined and you have access and knowledge of which preferred stock to buy limiting your losses if something happens while others lose.. F#$% him and his friends........

[krist6804]

04:03 PM on 07/21/2012

Who and what in the American system of justice is protecting and therefore encouraging corporate crime/bad behavior? Who is it that refuses to use the hard hand and instead supports namby-pamby go stand in the corner for 5 days and repent; then you can go back to doing business as usual.

You have been a very bad corporation, aren’t you ashamed of your selves? We do have rules and regulations and you are going to pay for this; but not today, or tomorrow or next year…..

How much is this discussing justice system attitude costing the American taxpayers?

The majority of bank robbers are residents of the vault.

[JBS]

03:50 PM on 07/21/2012

"Are the days of jail time here?”

Probably not.

[starchildjg24]

07:36 PM on 07/22/2012

Somewhere over the rainbow..................

[schatsie]

03:29 PM on 07/21/2012

Three strikes and you are out is good enough for the 99%, so it should be good enough for UBS....NATIONALIZE the US bank operations.... Our policy seems to be give them enough rope and they will keep taking it......

[kamact]

03:22 PM on 07/21/2012

Throw the executive team in prison and seize all their assets...This will send a powerful and corrective message to the rank and file and next generation...

[Janzee12000]

06:43 PM on 07/21/2012

Also, take over the bank. Review all operations and past transactions. Bring up charges against any further violators or, fire complicit employess. Ban them from any future financial employment anywhere. Right the ship and then releaase back to the shareholders with a governmental regulating body as it's board...After 50 years, maybe...., just maybe.., the bank can elect it's own board again...