01 Apr, 2008
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
In Q1 UBS says it
substantially reduced its real estate related positions through
both valuation adjustments and significant disposals.
It's also confident
that the new unit should it allow it to deal with the firm's
exposure to the US housing market and sub-prime crisis.
Marcel Ospel, will not be seeking re-election at the bank's 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."