Banking Times
January 9, 2008by Stewart Douglas
Story link: UBS Says GIC Input Could Solve Capital Problems
Investment bank UBS has today announced that there will be no need for a fresh capital drive after receiving investment from the Singapore investment corporation, which has helped solidify its financial position in the wake of writedowns related to its own exposure to the ill-fated sub-prime mortgage sector.
After being forced to writedown some $10 billion in exposure to the sub-prime sector in accordance with accounting principles and legislation, the investment house had been thought to be in the market for raising finance in order to fund future investments and replenish funds and reserves. However, following investment from the Government of Singapore Investment Corp (GIC) largely covering its losses, the bank has announced it will no longer be required to hunt for money.
Full story