Swiss Sell Stake in UBS
Switzerland has sold its 8.5 percent stake in Swiss banking giant UBS, making a $1.1 billion profit for Swiss taxpayers.
As the U.S. did during the financial crisis last fall for banks in this country, Switzerland helped prop up UBS by buying mandatory convertible notes to help clear the bank's balance sheet of toxic assets.
Today, the government has sold its stake to institutional investors and got a payment from UBS itself.
Ironically, the sale was helped by the bank agreeing to turn over the names on 4,450 secret bank accounts to U.S. authorities, which The Post's David Hilzenrath and Tomoeh Murakami Tse reported today.
Well, when UBS agreed to fork over the names, the U.S. agreed in turn to drop a big lawsuit against the bank. With that no longer hanging over the bank's head, investors felt more confident about UBS's future and bought up shares in the Swiss government's stake.
August 20, 2009; 12:18 PM ET
Categories: The Ticker | Tags: UBS
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