Skip to: Content
Skip to: Site Navigation
Skip to: Search
THURSDAY, NOVEMBER 26, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

Swiss Offer UBS $60B Bailout

Troubled banking giant will get capital injection, offload bad debts

Share

(Newser) – Switzerland became the latest nation to shore up struggling banks, reports the Telegraph, as it bailed out UBS to the tune of $60 billion today. The Swiss central bank will offer UBS a capital injection of $6 billion in exchange for 9% of the company, and it will allow UBS to offload billions in illiquid assets into a specially created fund. Another top Swiss bank, Credit Suisse, also received a lifeline after raising $10 billion from Mideast investors.

UBS has posted $44.2 billion in credit losses and writedowns since the start of the year, the most of any European investment bank. The Swiss bailout will leave UBS with "essentially zero" exposure to subprime and mortgage-backed securities, its CEO said. Shares in both UBS and Credit Suisse were up today after the announcements.

The Swiss government said Thursday, Oct. 16, 2008 it will recapitalize UBS in exchange for a 9% stake, and will help it offload toxic mortgage-backed securities into a special fund.
The Swiss government said Thursday, Oct. 16, 2008 it will recapitalize UBS in exchange for a 9% stake, and will help it offload toxic mortgage-backed securities into a special fund.   (AP Photo/Keystone, Alessandro Della Bella, File)
Credit Suisse has raised $10 billion in funds from Mideast investors to stave off further troubles.
Credit Suisse has raised $10 billion in funds from Mideast investors to stave off further troubles.   (AP Photo/Keystone, Alessandro Della Bella, File)
The Swiss government said Thursday, Oct. 16, 2008 it will recapitalize UBS in exchange for a 9% stake, and will help it offload toxic mortgage-backed securities into a special fund.
The Swiss government said Thursday, Oct. 16, 2008 it will recapitalize UBS in exchange for a 9% stake, and will help it offload toxic mortgage-backed securities into a special fund.   (AP Photo/Matt Dunham)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

388 Stories

 Ousted AIG CEO 
 Builds AIG 2— 
 With AIG Talent 

Greenberg's new insurer poaches AIG employees at taxpayers' expense

Oct 27, 09 7:47 AM CDT
(Newser) - Hank Greenberg built AIG into a $1 trillion behemoth that needed the biggest bailout in history—but quietly, the former CEO has begun a new insurance company, CV Starr, that is poaching some of AIG's leading talent. He just got an unintended assist from the Treasury: Tough new pay rules... More »

MORE ABOUT:
Iraq • executive compensation • insurance • AIG • Hank Greenberg • bailout • financial crisis

 Bailed-Out Banks 
 Boost CEO Perks 

From private jets to bodyguards, they just keep taking

Oct 20, 09 6:32 AM CDT
(Newser) - The CEOs of bailed-out banks and financial companies saw their perks and benefits—ranging from private jet use and country club membership to free parking and bodyguards—rise even at the height of the crisis last year. On average, the CEOs of the 29 biggest companies that received federal money... More »

MORE ABOUT:
executive compensation • CEO • bank • bailout • executives • financial crisis • perks

Neutral Swiss Becoming
US Lapdogs, Critics Charge

'Active neutrality' policy questioned after Polanski, UBS decisions

Oct 13, 09 7:06 AM CDT
(Newser) - Some Swiss politicians are griping that the country's prized neutrality appears to be sliding as the government adopts a more accommodating stance toward US authorities. The government agreed in August to turn over the names of thousands of suspected American tax dodgers banking with UBS, and Roman Polanski was busted... More »

MORE ABOUT:
diplomacy • Switzerland • UBS • tax evasion • Roman Polanski

388 Stories


A major rescue package, late in coming
Financial Times (UK)

Credit Suisse bails itself out
Forbes

Coverage of the bailout from Switzerland
swissinfo/Swiss Radio International


Business  •  World 
TwitterFollow @NewserBusiness on Twitter

 
Credit Suisse • Switzerland • UBS • mortgage backed securities • bailout • Swiss National Bank • financial crisis

from our news partners