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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (10208)	8/12/2008 6:26:10 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71454

42 billion less for UBS - What's not to like? -g- youtube.com fxstreet.com UBS rips up one-bank model as rich clients flee Tue Aug 12, 2008 4:39am EDT ZURICH (Reuters) - Swiss bank UBS will separate its wealth management business from investment banking, a move that could herald a spin-off or sale of the business that made it Europe's top casualty of the markets crisis. The embattled Swiss group unveiled plans on Tuesday to split wealth management from investment banking and asset management as the world's biggest banker to the rich hemorrhaged clients and admitted there were problems with its one-bank model. It said there had been net new money outflows of almost 44 billion Swiss francs ($41 billion) in the second quarter -- compared with inflows of 34 billion francs a year earlier -- and it racked up a further $5 billion in writedowns on investments. This took its total bill from the markets crisis to $42 billion. Investors welcomed the reorganization and hoped the worst might now behind the bank, and its shares rose 1 percent to 23.46 francs by 0832 GMT, compared to a weaker European banking sector. Landsbanki Kepler analyst Dirk Becker said he though the worst of the crisis was over. "As we believe there will be no further loss-making quarter, considering that the tainted assets have been drastically reduced, there should also be no danger of a further capital increase," he said. UBS's latest writedown shows it is among banks still unearthing credit market problems, joining U.S. rivals Citigroup and Merrill Lynch in taking more big hits in the quarter. Continued... reuters.com