the refusal of The shareholders to relieve the UBS leadership, is a bitter setback for Bank President Axel Weber and the CEO of Sergio p. Ermotti . The defeat represents for the leading Duo, but the primary is a scratch in the Image of the Bank be renewed, rather than that the vote poses legal risks for you. The analysis of the Discharge-refusal in six points:
in Purely legal terms, shareholders now have the opportunity to pull the Bank's management by responsibility question to account for the damage which the Bank may arise from the legal dispute in France.
action-the risk of the UBS leadership
if a shareholder complains That, actually, but is considered unlikely. For one thing, it will still take years until it is clear how expensive the dispute over aiding tax evasion in France. On the other hand a plaintiff, the Bank management would need to prove a breach of duty. This is a very high hurdle.
However, the vote is a major setback for the Bank's leadership. Axel Weber was on of the General Assembly is not tired to emphasize, that he and Sergio Ermotti cleaned after taking office, the Bank, and on the new, tax-transparent world have aligned. A number of legal cases could be cleared out of the way, as the manipulation of the Libor interest rate, or the manipulation of foreign exchange rates.
France-stone on the neck
In France, now wanted to conclude the UBS guide the cost of an expensive comparison, the have also closed an admission of guilt. That's what went wrong. In the first instance, the Bank cashed the conviction on a buses, in addition to damages of about five billion euros. The shareholders now according to the questions, whether the strategy, the process of risk was the right thing to do. And Weber's and Ermottis Image of the problem solver is damaged.
The next big threat
With the US compensation for the sale of sub-Prime mortgages which is the expensive risk in front of the door. Also, this process should go in the first instance is lost, and the UBS to Billion-dollar damages to be condemned, could Weber and Ermotti come under wicked pressure.
France-case: Ermotti and Weber to risk a little more in the office
For a final judgment about the processes, but it is still too early. Sure is: Weber and Ermotti to be handed over to the French issue to their successors. Because of the France-dispute-final is to be decided, is expected to take up to nine years. Then both are no longer in office. To have this dispute resolved. This mortgage loan will exercise their farewell to the balance-sheet entry.
Patiently he: answered question by question, in the end, it was enough for the trust (the Discharge) UBS President Axel Weber at the annual General meeting of big Bank in Basel's St. Jakobshalle. Keystone (editor-in-Tamedia)
Created: 02.05.2019, 15:13 PM