MORE: UBS May Face CHF6-9B Fine in FX Probe: Autonomous
2014-06-11 16:14:43.460 GMT
By Elena Logutenkova
June 11 (Bloomberg) -- Stefan Stalmann, analyst at
Autonomous Research, bases estimate for fine by U.S. and EU
regulators on previous settlements and likely $10b penalty
against BNP over alleged sanctions-busting.
* U.S. fines are undergoing Weimar-esque hyperinflation,
Stalmann says
* Two U.S. deferred prosecution agreements in five years make
UBS look like a “repeat offender”
* Fine would cut UBS CET1 ratio by 3-4 percentage points if
risk-weighted assets don’t increase, or by 4.5-6.5
percentage points if they do, Stalmann says
* UBS may need two years of sub-50% dividend payouts to boost
CET1 back to more than 13%
* UBS has said it’s conducting an internal investigation into
FX manipulation allegations and is cooperating with
authorities
* UBS official declines to comment on analyst report
* Autonomous Research estimates FX fines for banks including
UBS, Deutsche Bank, Citigroup and others at $35.1b
* EARLIER: Looming BNP Fine Shows Risk for Banks Ensnared in
Litigation NSN N6NDTQ6K50YT <GO>
Story Link:NSN N70HGB6JIJUZ<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Elena Logutenkova in Zurich at +41-44-224-4101 or
elogutenkova@bloomberg.net
To contact the editors responsible for this story:
Frank Connelly at +33-1-5365-5063 or
fconnelly@bloomberg.net
2014-06-11 16:14:43.460 GMT
By Elena Logutenkova
June 11 (Bloomberg) -- Stefan Stalmann, analyst at
Autonomous Research, bases estimate for fine by U.S. and EU
regulators on previous settlements and likely $10b penalty
against BNP over alleged sanctions-busting.
* U.S. fines are undergoing Weimar-esque hyperinflation,
Stalmann says
* Two U.S. deferred prosecution agreements in five years make
UBS look like a “repeat offender”
* Fine would cut UBS CET1 ratio by 3-4 percentage points if
risk-weighted assets don’t increase, or by 4.5-6.5
percentage points if they do, Stalmann says
* UBS may need two years of sub-50% dividend payouts to boost
CET1 back to more than 13%
* UBS has said it’s conducting an internal investigation into
FX manipulation allegations and is cooperating with
authorities
* UBS official declines to comment on analyst report
* Autonomous Research estimates FX fines for banks including
UBS, Deutsche Bank, Citigroup and others at $35.1b
* EARLIER: Looming BNP Fine Shows Risk for Banks Ensnared in
Litigation NSN N6NDTQ6K50YT <GO>
Story Link:NSN N70HGB6JIJUZ<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Elena Logutenkova in Zurich at +41-44-224-4101 or
elogutenkova@bloomberg.net
To contact the editors responsible for this story:
Frank Connelly at +33-1-5365-5063 or
fconnelly@bloomberg.net