Swiss bank UBS closes its U.S Unit
30 January 2008UBS, the largest bank of Switzerland, closes the proprietary unit in the USA, engaged in investments of fixed income, informs Bloomberg. This measure is an attempt to lower risks by closing divisions with a low level of income and engaged in risky operations, such as allowance of credits in the United States. Also, the bank will lower by two thirds financing of the real estate division, and will appoint the new manager on risks management.
In 2007 UBS was compelled to write off 14 billion dollars, being of the main victims in the world financial crisis. Trying to increase the level of capitalization to overcome the crisis, in December, 2007 the bank had to sell 9 percent of the shares to the government of Singapore.
The reason of the world financial crisis was the mortgage crisis caused by overvalue of American mortgage securities, given at loans by unreliable payers. Because of the crisis many financial institutions have taken a bath. So, on January, 17 American investment bank Merrill Lynch informed about write-off of actives for the sum of 15 billion dollars.
- Morgan Stanley will close the British mortgage unit
- Credit Suisse will cut 5300 jobs
- Credit Suisse dismisses employees in the USA and Great Britain
- HSBC’s income has increased despite of the mortgage crisis
