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UBS new unit to hold illiquid US real estate assets

Swiss banking giant UBS has formed a special unit to hold its illiquid US real estate assets as it reports writedowns of $19bn from the US sub-prime crisis.

In Q1 UBS says it substantially reduced its real estate related positions through both valuation adjustments and significant disposals.

Its also confident that the new unit should it allow it to deal with the firms exposure to the US housing market and sub-prime crisis.

UBSs chairman, Marcel Ospel, will not be seeking re-election at the banks Annual General Meeting on April 23 2008.

Marcel Rohner, chief executive officer of UBS, says: “We believe this capital increase and the creation of a vehicle to separate problem assets from the remainder of our businesses will allow us to return to sustainable value creation over time.

He adds: With these measures we have created the basis to weather one of the most difficult periods in the history of the industry.”


Lehman Brothers may temporarily stop lending

Lehman Brothers is considering suspending lending at its two UK mortgage lending divisions Southern Pacific Mortgage Limited and Preferred Mortgages.Rumours were rife this morning among packagers that Lehmans was looking to suspend lending and a source close to the firm confirmed that this was one of the options it was considering.No further information was available […]

Green guilt and living in the red

Lord Goldsmith, whose razor sharp legal mind was taxed to the full when he had to declare the regime-changing invasion if Iraq was legal, has proved himself equally adept at serving his new master, Gordon Brown, choosing the Tuesday of Budget week to reveal the conclusions of his five-month investigation into British citizenship. Brown, a […]

BoE piles in cash to boost confidence

The governor of the Bank of England has pledged extra liquidity to the money markets in a bid to re-store market confidence.

CML backs cautious lenders

The Council of Mortgage Lenders has rejected Vic Jannels’ call for lenders to abandon their cautious approach to business.Last week, the chairman of All Types of Mortgages said lenders should throw off the shackles and reintroduce affordable deals to build consumer confidence in the mortgage market.He says: “Many of the rates offered by balance sheet […]


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