I wrote in error last week, in this post, that,
"Breaking stories this afternoon on the internet have UBS agreeing to repurchase some $8.3B of the ARS instruments they bamboozled their clients into stuffing into their portfolios."
In fact, according to this weekend's Wall Street Journal headline, UBS agreed to pay $19 billion to clean up its share of the ARS mess.
Thus, Merrill, Citigroup and UBS have agreed to make good on a total face value of $36B, not just $25B, in fraudulently-marketed, misrepresented ARS notes.
This makes UBS the 'winner' in this sad story, outstripping even securities giant Merrill Lynch in its ability to churn out and place these toxic investment securities to its customers. In fact, UBS accounts for just over half of the total.
Who's going to subscribe to a new equity issue of the Swiss bank now, in order to help plug this latest gaping hole in its balance sheet?
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