by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX/SDNY, Jan 28 – Amid the FDIC's bid to eliminate public notice of and public comment on branch applications, UBS -- Union Bank of Switzerland -- is moving to convert to a national bank in the US and become a bank holding company.
Despite a November 11, 2025 formal challenge by Fair Finance Watch, Fed approval was doled out on January 26, 2026 - by the Federal Reserve Bank of New York.
This while the Fed has yet to provide documents on Inner City Press' FOIA request for any safeguards the Fed has given that it allows - puts - banks on the boards of directors of its Reserve Bank, which now dole out approvals to banks.
The blatant and costly conflict of interest on Silicon Valley Bank, on the FRBSF's board, was one thing - still not addressed. Now the massive UBS. FFW immediate submitted, to the Board and the FRBNY's Keith Goodwin, a request for Board review citing UBS impending appearance on Capitol Hill.
FFW filed for Board review, and on January 28 the FRBNY wrote to UBS, "On January 26, 2026, the commenter filed a petition for review with the Secretary of the Board. Acting under delegated authority, this letter is to advise that Applicants should not consummate the proposal until specifically authorized by the Reserve Bank or by the Board. The Board expects to decide whether to review the Reserve Bank’s delegated action within 10 calendar days of the date of the delegated action, i.e., on or before February 5, 2026, and will notify you of that action."
On November 11 Fair Finance Watch filed opposition to the Federal Reserve Board and to the Office of the Comptroller of the Currency:
This is a timely first comment on the applications by UBS Group AG and UBS AG, both of Zurich, Switzerland, and UBS Americas Holding LLC and UBS Americas Inc to become bank holding companies by acquiring UBS Bank USA, Salt Lake City, Utah, upon the conversion of UBS Bank USA from a state-chartered industrial bank to a national bank.
UBS, beyond its involvement in predatory subprime lending - see, e.g., "UBS to pay $300 million to resolve US mortgage securities cases," August 4, 2025 - has numerous other compliance scandal on which public hearings should be held, on this application and possible plan to relocate to the US.
There is tax evasion and retaliation against whisteblowers: “France: UBS fined in France for harassing whistleblowers”, 10 March 2025 The Swiss bank UBS was fined €75,000 (CHF71,410), the maximum penalty, in Paris on Monday for moral harassment by its French subsidiary of two whistleblowers, who had denounced the tax evasion system organised by the bank. UBS Europe, which absorbed the French branch, was also ordered to pay €50,000 in damages to Nicolas Forissier, the former head of internal auditing. However, the bank was acquitted of witness tampering and obstructing the health, safety and working conditions committee. According to Forissier’s lawyer, William Bourdon, this is the first time in France that a whistleblower has obtained a conviction against his former employer. … At the hearing, the public prosecutor had requested a maximum fine of €225,000 for the three offences.
There are human rights - and managerial - issues: the Society for Threatened Peoples Switzerland (STP) filed a specific instance against UBS Group AG (UBS) at the Swiss NCP. The complaint concerns the bank’s financial ties with Hangzhou Hikvision Digital Technology Co. Ltd. (Hikvision), a provider of modern surveillance technology that has played a key role in the mass surveillance of the Uyghurs and other Turkic minorities in Xinjiang, China. Also involving private prisons in the US.
(On November 25 UBS through Sullivan & Cromwell submitted a dismissive response, stating that " FFW criticizes UBS for business relationships with certain clients (e.g., private prisons).
There are managerial factor issues, particularly on an initial application to become a US bank holding company. Fair Finance Watch hereby timely requests hearings, and the denial of these UBS applications.
The denial was by a conflicted Reserve Bank.
See, e.g., Sept 10, 2025: https://www.americanbanker.com/opinion/the-fdic-is-undercutting-a-key-element-of-the-cra
But now the Federal regulator(s) blithely propose(s) to eliminate public notice and public comment on banks' proposals to expand - and the Fed doles out approvals through conflicted Reserve Banks. The above-quoted reasoning is that few comments are filed. So, that is now changing.
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
Feedback: Editorial [at] innercitypress.com
