NEW YORK (TheStreet) -- UBS (UBS) was placed under formal investigation by the French authorities and ordered to post bail of more than $1 billion in the kind of tax-evasion case that ensnared it in the U.S. several years ago, the New York Times reports.
The Zurich-based bank faces charges of money laundering and tax fraud for helping French clients hide funds from the national tax administration from 2004 to 2012, an official in the Paris prosecutor's office said.
UBS has also been ordered to post bail of 1.1 billion euros, about $1.5 billion, the official said, the Times noted.
The news was first reported Wednesday by Agence France-Presse.
Shares of UBS are up 1.64% to $18.54 in pre-market trade.
TheStreet Ratings team rates UBS AG as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate UBS AG (UBS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."