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You can find the current article at its original source at http://www.theguardian.com/business/2015/may/05/ubs-expects-forex-rigging-settlement-with-us-as-profits-surge
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| UBS expects forex-rigging settlement with US as profits surge | |
| (about 1 month later) | |
| UBS has said it is in advanced talks with the US Department of Justice to settle allegations of foreign exchange market rigging, as Switzerland’s biggest bank by assets posted forecast-beating first-quarter earnings. | |
| “Discussions with [the justice department] have continued and are at an advanced stage, although no agreement has been reached with the [department] on the form of a resolution,” the Zurich-based bank said in its quarterly report on Tuesday. | |
| The DoJ’s investigation centres on how traders allegedly manipulated the £3.5tn a day foreign exchange market. | |
| Sources last week said the DoJ and five major banks, including UBS, were on course to reach multibillion-pound agreements as soon as the second half of May. | |
| Related: Foreign exchange fines: banks handed £2.6bn in penalties for market rigging | |
| In quarterly earnings, UBS said net profit for the first three months of 2015 stood at Sfr1.977bn (£1.4bn), an 88% year-on-year rise in first-quarter net profit and well above the £776m analysts had forecast in a Reuters poll. | |
| Figures were boosted by the highest profits from the bank’s wealth management businesses since 2008. | |
| UBS’s wealth management arm won Sfr19bn in net new money, a key indicator for future revenue. Analysts had forecast net new funds of £9.4bn. | |
| The bank said it expected its wealth management businesses to continue to bring in net new money in the second quarter. |