UBS report details bank's failings

Switzerland's largest bank, UBS, has explained to shareholders how a breakdown in its risk management procedures resulted in $37 billion (SFr37.6 billion) losses.

This content was published on April 21, 2008 - 10:12

The bank admitted in a report on Monday how a culture of maximising revenues, over-reliance on credit ratings and an imbalanced compensation system contributed to the subprime write-downs.

The 50-page report, summarising its initial findings to the Swiss Banking Commission, was made available to shareholders two days before the bank's annual general meeting.

It details a "lack of comprehensive subprime risk assessment", a failure to respond early enough to industry-wide concerns about such investments and an over-emphasis on delivering growth.

The report also criticises its own compensation system that awarded bonuses for achieving gross revenue "with no formal account taken of the quality or sustainability of those earnings".

The debacle led to the sacking of several leading executives followed by the resignation of chairman Marcel Ospel at the beginning of April. Shareholders meet on Wednesday to vote on a SFr15 billion rights issue and the nomination of Peter Kurer to succeed Ospel.

Articles in this story

This article was automatically imported from our old content management system. If you see any display errors, please let us know:

In compliance with the JTI standards

In compliance with the JTI standards

More: SWI certified by the Journalism Trust Initiative

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at

Share this story

Change your password

Do you really want to delete your profile?