UBS is among the hardest-hit of the banks around the world that have collectively suffered more than $100 billion in losses from the crisis originating from defaults in U.S. subprime mortgages.
If you have read any of my commentary, history or articles, you are aware of the importance of Swiss banking as well as its role in the world banking system. UBS is a major hinge of the international banking community and is tied into the private banking sector as well with secret investors and ties to the Roman Bank. Because of this role and the power of Swiss banking, the news of this article should cause bankers and investors great concern. UBS has an extensive holding of pensions and other commercial financial holdings that impact the retirement community. The fact that UBS has made the error of investing so heavily in U.S. subprime mortgages is oversight on their part. The real concern is the impact that continued hits will have on existing strongholds in the corporate finance, insurance, pensions and reserve funds of all kinds. All these funds are at additional risk because of this recent bad investment write-off. ~ E.M.