Seeking the root of the UBS debacle
TEXT OF STORY
Doug Krizner: Swiss banking giant UBS is one of the firms hardest hit by the subprime crisis. There’s word this morning UBS will be investigated by Switzerland’s top banking regulator. From the European Desk in London, Stephen Beard reports.
Stephen Beard: UBS has written off $14 billion worth of American mortgage-backed securities.
The world’s largest wealth manager, UBS has impoverished itself. It’s been forced to sell some of its shares to Singapore and Saudi Arabia. Now, the Swiss Bank regulator is breathing down its neck.
Robin Pagnamenta of the London Times says officials want to know which UBS executives are to blame for the debacle:
Robin Pagnamenta: They are going to be looking at, you know, individual responsibility. And inevitably, I guess that raises the prospect of individuals facing regulatory action or prosecution.
Pagnamenta says Swizterland is shocked and angry about UBS’ huge losses, and worried about potential damage to the country’s reputation as a banking center. UBS shareholders get to voice their concerns at the bank’s upcoming annual meeting.
In London, this is Stephen Beard for Marketplace.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
