Seeking the root of the UBS debacle
Once the world's largest wealth manager, UBS is now staying afloat by selling shares to foreign investors. Stephen Beard reports Switzerland is upset, and officials want to figure out who's to blame.
A UBS bank logo from a branch in Geneva (Fabrice Coffrini/AFP/Getty Images)
More on The Economy, International, Europe
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.
