The campaign led by tax law activists is urging the US Department of Labor to revoke UBS's license to manage pension fund assets due to the bank's history of criminal behavior.

UBS's Extensive Record of Financial Misconduct

The activists argue that UBS's extensive record of financial misconduct disqualifies it from handling the retirement savings of American workers. UBS has paid around $20 billion in fines for 96 offenses between 2000 and 2023, while its recent acquisition, Credit Suisse, has faced 52 financial crimes and approximately $12 billion in fines over the past two decades.

Gaining Traction and Department of Labor Review

The activists' campaign is gaining traction as the Department of Labor reviews whether UBS should continue to operate in the US pension fund market, which manages assets totaling $30 trillion. UBS is pursuing a temporary exemption to continue managing pension funds, but the outcome of the review could have significant implications for the bank's operations in the United States.

Department of Labor's Clarification of Rules

The Department of Labor's recent clarification of its rules regarding corporate culture and compliance further intensifies the scrutiny surrounding UBS. The department's shift in policy indicates that serious criminal misconduct serves as a warning sign of potential compliance issues that may extend beyond the individuals directly involved.

Activists' Pointed Out Missteps in UBS's Application

Activists have pointed out several missteps in UBS's application for the exemption, including the bank's alleged failure to provide a comprehensive list of its criminal activities and its processing of transactions for pension funds after its exemption expired.

A Broader Message to the Financial Industry

The activists' campaign aims to send a broader message to the financial industry, emphasizing the importance of all financial institutions adhering to the same standards of accountability.

Potential Consequences for UBS

If the Department of Labor rejects UBS's application for an exemption, it could have dire consequences for the bank, impacting its revenue and reputation in the global financial market.

Increasing Demand for Accountability

The ongoing scrutiny of UBS reflects the increasing demand for accountability among financial institutions, particularly in managing the retirement savings of millions of Americans.

Implications for Financial Regulation

The outcome of this campaign could reshape financial regulation in the United States and raise public awareness about the risks associated with allowing banks with criminal records to operate in critical markets.