Summary
BERNE, Switzerland (HedgeWorld.com) - UBS, one of the world's largest financial firms, has announced that it is to write down its subprime debt holdings by $10 billion. This comes in addition to the $4.4 billion write-down in its fixed-income and consumer credit portfolio announced at the end of the third quarter.
The firm has also announced a series of measures to shore up its Tier 1 capital base to the tune of 19.4 billion Swiss francs ($17.2 billion), including a large capital injection from two strategic investors. "As a result of these measures UBS will be one of the best capitalized banks in the world," said UBS Chairman Marcel Ospel in a conference call Monday morning [Dec. 10].See the full content of this document
Extract
Ubs in $10 Billion Subprime Write-Down
Some have called the write-down a "surprise move," but recent conversations with industry participants - particularly asset managers and bankers in Switzerland - indicated that both the write- down itself and the amount were widely expected. Indeed, in the conference call following the announcement of a third-quarter write- down, the bank effectively paved the way f...
See the full content of this document
Sponsored links
