Union Bank of Switzerland has announced that it will repay the loan provided by the SNB in 2008 when it took a 9% stake with a CHF 6 bln bail- out after UBS posted huge losses on its mortgage security business.
The SNB sold the stake less than a year later for a CHF 1.2 bln gain but had a bigger task in managing the toxic assets it inherited as part of the bailout. The “Stabilization Fund” has has since been sold down and in this morning’s SNB report shows an H1 profit of CHF 316 mln.
USB has exercised the right to buy back the fund now that the loan will be repaid in Q4
A bit of good news for the Swiss banking system after the recent and ongoing tax/information wars with the US
USDCHF unfazed though at 0.9311 EURCHF 1.2348
