UBS Is Fined $4.2B in French Tax-Evasion Case
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Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#2No paywall https://outline.com/YSFyPN
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#3Does anyone know what the likelyhood of the 4.2B being paid out is? I imagine that UBS will go through all possible appeals processes.
Also if the article is right in that this was affected by the protests, then that is a big win for protesting.
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#4Does anyone know what the likelyhood of the 4.2B being paid out is? I imagine that UBS will go through all possible appeals processes. Also if the article is right in that this was affected by the protests, then that is a big win for protesting.
UBS's market cap is $46B. After this was announced, their stock fell 4%. This drop, if permanent, would equate to a loss of ~$1.84B in market cap.
There are many factors that could be influencing price, but if we attribute this 4% delta entirely to the announcement, the market is guessing the actual penalty will amount to $1.84B. This could be bc the market thinks UBS can appeal with a 50% success rate, or can negotiate the penalty down by 50% with high certainty.
Edit: I hadn't considered tax implications. If UBS is able to deduct these penalties pre-tax (which I'd assume they would), then it suggests that they are very likely going to have to pay the full penalty. Of course, this is all guess work. e.g. the market could be scared that this sets a precedent for future additional penalties which would decrease the signalling towards full payment on this penalty.
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#5Does anyone know what the likelyhood of the 4.2B being paid out is? I imagine that UBS will go through all possible appeals processes. Also if the article is right in that this was affected by the protests, then that is a big win for protesting.
UBS's market cap is $46B. After this was announced, their stock fell 4%. This drop, if permanent, would equate to a loss of ~$1.84B in market cap. There are many factors that could be influencing price, but if we attribute this 4% delta entirely to the announcement, the market is guessing the actual penalty will amount to $1.84B. This could be bc the market thinks UBS can appeal with a 50% success rate, or can negoti…
This isn't quite right -- The 4% loss could just represent the delta between what was already priced in and the actual loss. This case has been a long time coming so the expectation of the penalty should have been priced in long ago.
Secondly, and it depends on the jurisdiction, but penalties and fees associated with wrongdoing generally aren't tax deductible.
The US clarified this during the TCJA but most countries agree: https://www.clearyenforcementwatch.com/2018/02/1962/
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#6Another slap on the wrist. No one goes to jail because of Deferred Prosecution Agreements
HSBC got fined about half that when they caught laundering money for the Mexican cartels a few years back. True story: HSBC had to design special teller windows because the standard ones were too small to fit the sacks of money that were being brought in and laundered. If you want to know why these guys don't go to jail, pull up a bottle of lithium and sit down with The Chickenshit Club.
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#7Another slap on the wrist. No one goes to jail because of Deferred Prosecution Agreements HSBC got fined about half that when they caught laundering money for the Mexican cartels a few years back. True story: HSBC had to design special teller windows because the standard ones were too small to fit the sacks of money that were being brought in and laundered. If you want to know why these guys don't go to jail, pull up…
Moneyland is another good book on this subject.
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#8Another slap on the wrist. No one goes to jail because of Deferred Prosecution Agreements HSBC got fined about half that when they caught laundering money for the Mexican cartels a few years back. True story: HSBC had to design special teller windows because the standard ones were too small to fit the sacks of money that were being brought in and laundered. If you want to know why these guys don't go to jail, pull up…
It was 4.2 billion not million, it probably should have been more, but that's definitely not a slap on the wrist.
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#9Another slap on the wrist. No one goes to jail because of Deferred Prosecution Agreements HSBC got fined about half that when they caught laundering money for the Mexican cartels a few years back. True story: HSBC had to design special teller windows because the standard ones were too small to fit the sacks of money that were being brought in and laundered. If you want to know why these guys don't go to jail, pull up…
HSBC allegedly laundered (not revenue, not profit, they laundered) $880 million.
They were fined $1.9 billion.
Not "fined about half"
Re: UBS Is Fined $4.2B in French Tax-Evasion Case
#10Another slap on the wrist. No one goes to jail because of Deferred Prosecution Agreements HSBC got fined about half that when they caught laundering money for the Mexican cartels a few years back. True story: HSBC had to design special teller windows because the standard ones were too small to fit the sacks of money that were being brought in and laundered. If you want to know why these guys don't go to jail, pull up…
HSBC allegedly laundered (not revenue, not profit, they laundered ) $880 million. They were fined $1.9 billion. Not "fined about half"
I think he meant half of $4.2 billion.