UBS Faces New Scrutiny Over Nazi Accounts Settlement Files After Court Ruling

UBS Refuses to Hand Over Nazi-Linked Documents Amidst Probe

UBS Group AG has decided against handing over a collection of privileged documents to Neil Barofsky, who is overseeing a probe into Credit Suisse's handling of Nazi-linked accounts. The decision comes after a New York judge ruled that UBS cannot be shielded from future lawsuits, a development that has left the bank exposed to potential multi-billion dollar liability claims.

According to UBS, it had initially considered providing Barofsky with access to the documents, but changed its mind after the court's decision. The bank had inherited a number of legal cases from Credit Suisse, including the ongoing probe, when it acquired its troubled former rival in 2023.

The investigation, which has already revealed hundreds of possible leads on Nazi-linked accounts, including those of senior officials and entities, has been ongoing for several months. Barofsky has expressed concerns that the withheld records, which number about 150, appear to be crucial to the investigation.

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The decision by UBS to withhold the documents has sparked a new round of criticism from lawmakers, including Senator Chuck Grassley, who chairs the Senate Judiciary Committee. Grassley has threatened to hold another public hearing on the topic this fall, following a heated exchange with two top UBS executives in February.

UBS has maintained that it is not withholding documents from prior to the 1990s, even if they were included in the 1990s class action litigation files. The bank has also stressed that the language of the 1990s accord expressly protected it from any potential further liability. However, the investigation's findings have raised concerns that Credit Suisse may have failed to share findings from its historical review regarding the Holocaust and World War II with the public.