Swiss banking giant UBS is facing mounting pressure to reckon with its historical ties to Nazi-linked accounts, as an investigation into the alleged mishandling of Holocaust victims’ funds is nearing completion. Jewish groups, including the World Jewish Congress, are demanding billions in additional restitution, arguing that the banks failed to disclose accounts inherited from Holocaust survivors. Ronald Lauder, president of the World Jewish Congress and a central figure in the 1998 $1.25 billion settlement with Swiss banks, has called for further compensation, claiming the previous agreement left significant sums unpaid.
The ongoing probe, led by independent ombudsman Neil Barofsky, has uncovered irregularities, including hundreds of accounts labeled under internal terms like an “American blacklist.” Barofsky’s preliminary findings suggest that Nazi-linked accounts may have held far more than the amounts initially disclosed, with some holding millions in contrast to the modest sums reported at the time. Lauder argued that the funds were likely looted from Holocaust victims, claiming “none of that was covered by the 90s settlement.”
Credit Suisse, which was acquired by UBS in 2023 after a series of scandals, is now at the center of the controversy. The merger of the two banking giants raises questions about accountability, as the banks face a potential obligation to pay billions in restitution. While some argue the 1998 agreement protects the banks from future liability, others contend the new investigation could lead to significant financial consequences for UBS. With the final report expected to be released early next year, the case has sparked renewed debate about historical accountability and justice for Holocaust survivors.