![]() UBS said its overall remaining exposure to the unnamed counterparty which incurred the third-quarter dent is «minimal». ![]() A total of 23 banks including Britain's HSBC, France's Crédit Agricole, and a series of Asian banks were hit.Īgritrade International represents another high-profile case of alleged fraud: more than 20 banks lost sank nearly $600 million after the company, also Singapore-based, allegedly forged documents. ![]() This summer, Singaporean commodities and oil trading firm Hin Leong Trading collapsed.īanks kissed off a total of $3.5 million after it emerged that the company allegedly forged documents in order to sell a shipment of oil that was meant as collateral. subprime mortgage meltdown, also said it expected to make a fourth-quarter loss, reversing previous guidance, and said it may also register a loss. Several big trade finance cases made headlines this year (Switzerland is a traditional stronghold for commodities financing), which cost major banks billions. UBS, which has been severely battered by the U.S. UBS was also forced to take weighty write-downs of 84 million francs in total, the bulk of which – 54 million – stemming from «a case of fraud at a commodity trade finance counterparty,» it said, without specifying. It left unsaid the other reason: challenger banks are undercutting major incumbents like UBS on fees and terms. UBS cited lower credit card fees and fewer foreign exchange transactions, as travel screeched to a halt during the pandemic. The fall represents the continued erosion in profits from personal and corporate banking. This is still slightly better than the trough of 229 million francs UBS sank to in the second quarter. UBS' domestic activities undercut a powerhouse result elsewhere: Swiss pre-tax profit tumbled to 305 million Swiss francs ($334 million) from 353 million francs year-ago, the Swiss bank said in its quarterly results on Tuesday. NEW YORK () - UBS, the Swiss financial services giant, will take a multibillion write-down due to risky debt holdings linked to the deteriorating housing market, according to a news. News of UBS’s losses was first reported by the Wall Street Journal.The Swiss bank took a hefty write-down in the third quarter, off the back of a trade finance fraud case. The FT report did not specify what type of fixed-income assets UBS was writing off. Despite signs in recent weeks that the credit tightness may be easing, some banks continue to report they are struggling to find cash on wholesale lending markets. If regulators push through a takeover of Credit Suisse by UBS Group AG, it’s possible that they would force a writedown of CoCos as part of the deal. subprime mortgage market, sparked by growing defaults on riskier loans, has created a squeeze in credit markets around the world. Persistent worries about the health of the banking system have weighed on financial markets around the world.Ī meltdown in the U.S. Investors have grown increasingly concerned that more banks might announce losses related to credit problems as they closed their books on a tumultuous third quarter. ![]() Wuffli had led the bank of a steep growth path, expanding from its traditional base in private banking and rapidly building up its business in the United States. The bank earlier this year replaced Wuffli, saying it was dissatisfied with his handling of the bank’s in-house hedge fund, Dillon Read Capital Management. The potential losses come at a time when critics are questioning UBS’s dual strategy of investment banking and wealth management. UBS told investors in August that the third quarter would be difficult if credit markets continued to struggle. The bank will report the fixed-income loss on Monday, ahead of its third-quarter results which are due October 30, according to the Journal. The Wall Street Journal reported UBS was projecting a third-quarter loss of 600 million to 700 million Swiss francs based on a writedown of 3 billion to 4 billion Swiss francs. UBS, which ousted its chief executive, Peter Wuffli, in the wake of losses at an in-house hedge fund in July, is set to replace its investment banking head, Huw Jenkins, the reports said, fuelling speculation that UBS might be altering its strategic course away from investment banking.Ĭiting people familiar with the matter, the FT said UBS was expected to say it has written down its fixed-income portfolio by more than 3 billion Swiss francs ($2.6 billion), triggering a third-quarter loss of at least 600 million Swiss francs. A passerby walks in front of the UBS at the Bahnhofstrasse in Zurich, in this file photo from November 1, 2005.
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