UBS completes $38.7 billion toxic asset transfer
Switzerland's National Bank said Friday that UBS has completed its final installment of toxic assets to a specially-created investment fund of $38.7 billion.
(IBTimes) -- 04/03/2009 --

Switzerland's National Bank said Friday that UBS has completed its final installment of toxic assets to a specially-created investment fund of $38.7 billion.

The transfer was part of UBS AG's remaining $22.2 billion in toxic assets from the bailout plan agreed between the country's biggest bank and the government last year.

The central bank said independent assessors set the price, which is $700 million lower than the book value of $22.9 billion estimated by UBS in September 2008.

While a sizable amount, the price was within the "range of expectations of analysts," says Dirk Becker of Kepler Capital Markets. "We are talking about billions of dollars of illiquid assets," he said.

Last Month UBS reported net loss to 20.9 billion-franc or $18.06 billion for 2008, slashing 11,000 jobs, and more than $50 billion in write-downs. The bank remains ''extremely cautious'' about the outlook for this year.

Shares of UBS rose 44 cent or 4.31 percent at $10.64 in the New York Stock Exchange trading.

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