Switzerland injects cash into UBS

Business Materials 16 October 2008 12:43 (UTC +04:00)

Switzerland is taking steps to strengthen its largest bank, UBS, the latest country to unveil a banking rescue plan.

UBS will raise 6bn Swiss francs ($5.3bn) from the Swiss government, reported BBC.

It will also be able to transfer up to $60bn of toxic assets to a fund supported by the Swiss central bank.

Credit Suisse said it had raised 10bn Swiss francs from major global investors, adding that it did not need to tap government funds at this time.

The Swiss National Bank said its moves would help to stabilise the financial system and was favourable for the development of the Swiss economy.

UBS also announced that it made a small net profit of 296m Swiss francs in third quarter, mainly due to its wealth management business. Its investment banking arm made a loss of 2.8bn francs.

Credit Suisse said it expected to make a loss of 1.3bn Swiss francs in the three months to September.

Credit Suisse also said that the Qatar Investment Authority was among the group of global investors that had helped the bank to shore up its finances.