UBS has been kicked rather hard due to its business practices, writing down billions and scrambling for a government bailout back home in Switzerland. While none of that is comes as much of a surprise for Phil Gramm's employer, the post-bubble actions most definitely are surprising. Executives are either declining or giving back bonuses - millions of dollars worth of bonuses - and the company is going to allow a review of its business. The fact that we have seen nothing like this on Wall Street is not only disappointing, it's infuriating as hell.
Wall Street continues to get a free ride when they ought to be jumping and asking "how high?" to the country. Somehow there continues to be a total lack of accountability in America these days but hats off to the Swiss for moving in the right direction.
UBS found itself in need of government support after taking close to $50 billion in write-downs on subprime debt and other risky assets. The deal includes a 6 billion franc capital injection and a plan to move up to $60 billion of remaining risky assets to a new fund.
In a concession to shareholders Kurer also said the bank will allow another investigation into its losses and the role of former executives, including whether it should take legal action against any individuals.
Earlier reports from both UBS and the Swiss Federal Banking Commission found no evidence of individual breaches of duty by any current or previous senior executives, Kurer added.
