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UBS and CS can allocate € 43,5 billion for struggle against crisis
19 July 2008Swiss authorities can address to the largest banks of the country - UBS and Credit Suisse - with the offer to reserve 70 billion Swiss francs (43,5 billion euro) in case of further development of world financial crisis.
In case of adverse succession of events, financial obligations between banks will be distributed as follows: 40 billion Swiss francs (25 billion euro) for UBS and 30 billion Swiss francs (19 billion euro) for Credit Suisse.
As it became known, adjusting bank bodies of Switzerland are measured to enter the new law, which is obliging UBS and Credit Suisse to allocate means, which will become a guarantee from losses like that has incurred UBS owing to crisis in the financial markets.
Let’s remind, in I quarter of 2008 UBS’s pure losses have made 11,54 billion Swiss francs (7,11 billion euro) in comparison with net profit at the rate of 3,03 billion francs (1,86 billion euro), received for the similar period year earlier. for the specified period The proceeds of bank have fallen up to 20,22 billion Swiss francs (12,46 billion euro), that is on 22 % less than the parameter fixed, in I quarter 2007.
At the same time, for first three months of 2008, pure losses of Credit Suisse have made 2,15 billion Swiss francs (1,33 billion euro) against net profit in 2,73 billion francs (1,7 billion euro) for the similar period year earlier. Thus the proceeds of bank were reduced almost four times, having made 3,09 billion Swiss francs (1,93 billion euro), whereas in I quarter of 2007 this parameter made 11,62 billion francs (7,3 billion euro).
The bank has also declared about write-off of actives because of credit crisis for the sum of 5,3 billion Swiss francs (3,3 billion euro) in I quarter 2008 and it has become a principal cause, fixed on results of quarter of losses.
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