Credit Suisse, the country's other large bank, moved independently to shore up its battered balance sheet by raising SwFr10 billion (£5.2 billion) from three Middle Eastern shareholders.
As part of a drive to restore confidence to its financial system, the Swiss Government injected SwFr6 billion into UBS through an issue of convertible bonds. Once the convertible bonds turn into shares, the Government will assume a stake of up to 9.3 per cent, making it the second-largest shareholder behind Government of Singapore Investment Corp (GIC).
At the same time, UBS struck an extraordinary deal with the Government to transfer up to $60 billion of its toxic securities - including US sub-prime mortgages and student loans - into a new fund. More...