Business News
Central bank to keep UBS troubled assets
Oct 3, 2009, 13:56 GMT
Geneva - The Swiss National Bank has no intention at present to sell back to UBS AG the toxic assets it acquired last year as part of a rescue package for the troubled bank, a key central banker said Saturday.
Speaking with Swiss radio, Thomas Jordan said the central bank would continue to administer the special fund, in spite of some indications from UBS that it was interested in buying back the assets.
Last October, the SNB opened the 'stabilization fund' capable of absorbing up to 60 billion dollars worth of troubled assets from the country's largest bank, which suffered more write-downs than any other bank in Europe in the financial crisis.
Jordan pledged to keep up risk reduction for the coming years at the fund, now holding risks worth 25 billion dollars, down about 10 billion from when it was opened.
He estimated at 50 per cent the chances of the SNB losing money on the deal.
The Swiss government exited in August its nearly 6 billion dollar investment in UBS, another side of the rescue package for what was until recently the world's largest wealth manager, but has seen massive capital outflows in the last year.
That sale of the state's approximately 9 per cent stake in the bank generated a profit of over 1 billion dollars for the government.
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