UBS on Monday became the second big investment bank in a fortnight to be bailed out by sovereign wealth funds when it announced a SFr19.4bn ($17.2bn) recapitalisation plan after revealing another $10bn of losses on subprime mortgage securities. UBS was forced to turn to the Government of Singapore Investment Corporation (GISC) and an unnamed investor from the Middle East for a total of about $11.5bn in funds to shore up its balance sheet after the fresh losses emerged. Hopes that the fresh capital and writedowns might mark a turning point for UBS boosted its shares nearly 2%, despite the bank’s warning it could announce its first full-year loss since it was created a decade ago. “Incredible”, says Lex of the share price jump, wondering if investors are being too optimistic. Marcel Ospel, UBS chairman, rejected suggestions that his credibility had been undermined by the events and said he neither desired nor expected a bonus for the current year. But the FT’s Paul Betts says Ospel, as the “terminator par excellence”, should abide by his own rules and do the right thing – fire himself elegantly.

This entry was posted by Gwen Robinson on Tuesday, December 11th, 2007 at 5:53 and is filed under Capital markets, People. Tagged with marcel ospel, ubs. Edit this entry.