UBS moves to spare taxpayers another bailout

UBS building

UBS secured support from its investors to swap 90% of their shares into a new holding company under a plan to spare taxpayers another bailout of the bank.

Bloomberg News reports that UBS is set to make its trading debut next week, consolidating supervision of subsidiaries at a non-operative level. Regulators say this will make it easier to wind them down and prevent a failure from disrupting the financial system.

UBS has said the creation of the holding company will probably reduce the amount of capital the bank has to hold under Swiss too-big-to-fail rules. The bank expects to return at least 25 Swiss centimes per share to stockholders of the new group.

Investors have been tendering their shares on a one-for-one basis since October 14. At least two-thirds had to go along with the plan for it to be valid.

To access the complete Bloomberg News article hit the link below:

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