Billions?

The government injection of funds into UBS could represent a 9 percent stake in the bank, whose $44 billion write-downs related to toxic assets have been Europe’s worst.  UBS said it had also reached an agreement with the Swiss central bank to transfer up to 60 billion dollars of non-liquid assets into a separate fund.  Under the agreement, the Swiss National Bank would lend UBS 54 billion dollars for this separate fund, with the remaining six billion dollars to come from UBS itself.  Switzerland became the latest European country to bail out its troubled banking sector this morning by injecting SwFr6 billion (£3 billion) into UBS, taking what could become a 9.  UBS will also transfer $60 billion of illiquid toxic assets, including US sub-prime mortgages and student loans, to a new vehicle controlled by the Swiss National Bank (SNB), capping their future losses and reducing the risks on its balance sheet.  The bank will receive up to $54 billion so that it can part with securities that have gone bad since the start of the worldwide financial crisis.

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