UBS Subprime

About UBS Subprime

UBS lost approximately 50 billion on US subprime mortgage investments. The Swiss bank had been the largest underwriter of auction rate securities. UBS wrote down 37 billion in the fourth quarter of 2007 alone. The Swiss government provided a 60 billion rescue package, purchasing 60 billion in toxic assets. Marcel Ospel, the chairman, resigned. The Swiss Financial Market Supervisory Authority demanded capital increases. UBS raised 13 billion from the Government of Singapore Investment Corporation and approximately 11 billion from unidentified Middle Eastern investors. The US Department of Justice investigated UBS for helping wealthy Americans evade taxes, leading to a 780 million settlement. The UBS crisis showed that even Swiss banks were exposed to US subprime risk.