UBS denies needing another infusion

UBS AG today denied needing a fresh capital injection from the Swiss government after a top Swiss bank regulator told SonntagsZeitung newspaper that one might be necessary.
“A further capital injection by the government is not required,” said a UBS spokesman.
The Zurich bank’s shares lost nearly 50% this month
Even if the bank received a capital injection, it is questionable whether a rescue package would be sufficient, Daniel Zuberbuehler, director of the Swiss Federal Banking Commission, said in the SonntagsZeitung story.
Despite the sharp drop, a takeover of UBS by another bank is not likely, Mr. Zuberbuehler said.
In mid-October, Swiss officials announced that UBS and Credit Suisse Group, also based in Zurich, would receive a total of $14.1 billion to get the country’s two entities back on solid financial footing (InvestmentNews, Oct. 16).
On Nov. 4, UBS announced that it recorded a third-quarter profit of 296 million Swiss francs ($252 million) but incurred 5.1 billion francs ($4.4 billion) of write-downs (InvestmentNews, Nov. 4).

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