Swiss Banks Struggle with Toxic Debt and Outflows
TL;DR Summary
UBS has set aside $665 million to cover the cost of toxic mortgages, which has halved its Q1 profit. The bank's CEO, Sergio Ermotti, has warned of the difficulties ahead as it embarks on an integration process that may take four years after it takes over Credit Suisse. UBS reported a 52% slide in quarterly income, but also reported strong inflows of $42 billion. The bank was an issuer and underwriter of US residential mortgage-backed securities in the five years to 2007, and November 2018 saw US authorities commence legal action against the Swiss bank.
- UBS profit halves as cost of old toxic debt mounts Reuters.com
- Credit Suisse reveals results of last financial quarter before rescue - BBC News BBC News
- Credit Suisse Saw $69 Billion of Outflows in 1Q Bloomberg Television
- UBS's Rapidly Shrinking Credit Suisse Rescue Bloomberg
- Heard on the Street Recap: Bizarre Profits The Wall Street Journal
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