UBS, a Swiss bank has said that it will not be taking legal action against its former board members or executives of the mountainous losses it incurred in the subprime crisis in the US, which resulted in the company needing bailing out.
Chairman on UBS, the largest bank in Switzerland Kaspar Villiger said in a statement released Thursday that the company had learned some hard lessons, but was now ready to focus on the future.
“What happened should not have been allowed to happen. With our decision to refrain from legal proceedings, we do not want to gloss over the mistakes made by UBS or absolve those involved of their corporate responsibility,” Villiger said.
A transparency report released by the bank has acknowledged that the investments in the US were not planned properly and that “Despite warnings, the bank falsely believed that its financial products in relation to the U.S. real estate market were valuable and sufficiently hedged against losses.”
UBS lost billions in the crisis, as well as the confidence of many investors as it engaged in a tax dispute with the US.
Despite the multiple failures by the board members and executive in control of the bank at that time, UBS has said that no legal action against them will be pursued, given the negative publicity that such an undertaking would no doubt bring.
Despite there being sufficient evidence to carry out a lawsuit against the ex-executives, the report called the action “inappropriate” both for the interest of the bank, and for its shareholders.
