Standard Chartered Denies Risk Claim, UBS Could Face Criminal Probe

Standard Chartered Shanghai Towers

Standard Chartered's CEO Peter Sands denied U.S activist investor Muddy Waters' claim that the bank has taken on too much risk, saying its loan book was in a good condition and there is no change in risk appetite for lending.

Reuters reports that Sands' comments came after Carson Block, the founder of Muddy Waters, told a conference earlier this month that he had bet against Standard Chartered's debt because he thought the market was underestimating the risk in the bank's loan portfolio.

'We're very comfortable with the quality of the book', Sands told reporters in the Indonesian capital Jakarta.

In the meantime, the news agency also reports that UBS' French unit could be placed under formal investigation in the coming days as part of a broader probe into the Swiss bank's business practices, a person familiar with the matter said on Friday.

UBS France CEO Jean-Frederic de Leusse was questioned by judges who are deciding whether to formally place the bank under investigation - a step which under French law means there is serious or consistent evidence pointing to probable implication of a suspect in a crime -, the source said.

StanChart's Sands says Muddy Waters' debt bet misplaced

UBS France could face criminal investigation: source

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