UBS shares rise on possible end to US legal cases

0 Comments | AFP, June, 2009

ZURICH (AFP) — Shares in Swiss bank UBS rose sharply Wednesday following a report that US authorities might abandon legal action against the lender.

UBS shares closed up 5.5 percent at 14.85 Swiss francs on the Swiss Market Index, which itself rose by 2.3 percent.

"A positive outcome for UBS in the legal procedure under way (in the United States) could help (re-establish) the bank's reputation and confidence and activate a flow of new money," said analyst Rainer Skierka of the Sarasin bank.

"But it will take some time to re-build its reputation."

UBS has come under intense scrutiny after it admitted guilt to US tax fraud in February and identified some 300 US clients suspected of fraud by the United States. It also paid a fine of 780 million dollars (556...