UBS AG:

* Says with this transaction, UBS caps future potential losses from these assets, secures their long-term funding, reduces its risk-weighted assets, and materially de-risks and reduces its balance sheet

* Says this transaction allows the snb and shareholders of UBS to participate in the recovery potential of the entity’s assets once the loan is fully repaid

* Says the solution significantly reduces the uncertainty for UBS shareholders

* Says the solution contributes to the stability of the financial system by ensuring an orderly sale of these assets

* Says the fund will be capitalized with up to USD 6 billion of equity capital provided by UBS and a non-recourse loan in the maximum amount of USD 54 billion provided to the fund by the snb

* Says recorded a small net profit attributable to its shareholders of CHF 296 million for third quarter 2008

* Says wealth management & business banking recorded net new money of negative CHF 49.3 billion in the third quarter

* Says UBS is confident that it has created the conditions necessary to reverse the outflow of client assets with today’s measures

* Says the transaction with snb will result in a significant reduction in ubs’s risk-weighted assets and its balance sheet total

* Says the impact of the transaction and related capital measures will be shown in the fourth quarter results separately from the operating performance

* Says on a preliminary basis, UBS estimates that the transaction will result in a charge against earnings of approximately CHF 4 billion

* Says these impacts would produce a year-end tier 1 ratio of approximately 11.5%, before any other fourth quarter effects

((Zurich Newsroom, zurich.newsroom@reuters.com, +41 58 306 7336))

Source: http://www.afxnews.com

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