The first proposal from the French authorities had been for a €74m out-of-court settlement but with the bank pleading guilty to soliciting clients in a way that breached the rules. The parties moved on to the idea of a €100m settlement but without any guilty plea. But the French rejected this. 

Formal probe

At the moment, the French are increasing the pressure on the bank - demanding a bail payment of €1.1b and putting the French arm of the bank under formal investigation and alleging money laundering. A UBS spokesman said: ‘We consider both the legal basis for the bail amount and the method of calculation to be deeply flawed and will appeal. We will continue to defend our case strongly. In the course of the last few years, we have done everything we can to bring this matter to a close. We have also taken significant and broad steps to ensure tax compliance of our clients and will continue to do so. It is not acceptable to us that this has become a highly politicised process.’ Source: Financial Times