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Sunday, March 23, 2008

Economy, Politics: Swiss Finance Minister to support major swiss bank

© Thomas Ramseyer
31.01.2008’s news’ headline says:
Swiss Finance Minister to support UBS
„Finance minister to support UBS telling people UBS not to breech liquidity rules!“

I reckon this being the very first time such thing happens; UBS being deep in shit must be considered at 5 minutes to 12 o’clock by a rather desperate Berne.

Not breeching rules only possible by support from middle (some middle-east-prince EUR 2 bio) and far (far-east gic some EUR 15 bio) east pouring convertible loan money into UBS’ densening black hole: wrong unwanted equity holders, threatened by creditors to be depreved from capital by cancelling convertable equity.

UBS may raise capital for whatsoever reason in a high frequency at any level diluting actual shareholders’ stakes during convert’s lifetime.

(Also remember: UBS’ past years’ excellent results have been misused to buy back shares at highest levels just to be sold back to the market nowadays and in the near future - potentially to unwanted easterners – at lower levels causing unrecognised losses because of the gap of time between the relevant transactions.)

I consider UBS top level managment having foreseen their balance-spv-overload crisis for quite some time thus having former CEO replaced by a far too young one trying to ensure that Ospel would not have to step down for the reasong of the pretended lacking of adequate managerial know-how within the UBS. (Rabbit to be the gardener policy).

With the worldwide economic condition to come there will be quite some convalescent period of time to be faced by the whole banking system „Merz-safe“ UBS included.

copyright Thomas Ramseyer