UBS and the Subprime Mortgage Crisis

ICMR HOME | Case Studies Collection

Case Details:

Case Code : FINC061
Case Length : 22 Pages
Period : 2001-2009
Pub. Date : 2010
Teaching Note :Not Available
Organization : UBS AG
Industry : Banking
Countries : Switzerland, US

To download UBS and the Subprime Mortgage Crisis case study (Case Code: FINC061) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

» Finance Case Studies
» Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Please leave your feedback

<< Previous

Excerpts Contd...

Why did it Happen?

In the aftermath of the crisis, UBS initiated an investigation into the causes as demanded by the Swiss Federal Banking Commission (SFBC). The investigations were carried out by 20 lawyers from the company. SFBC also submitted a report on the causes of write-downs at UBS due to the exposure to the US subprime mortgages...

The Remediation Plan

In July 2008, UBS submitted a remediation plan to SFBC. The report specified the remedial action UBS proposed to take in the areas of strategy, governance, risk management, risk control, finance, balance sheet management, and compensation...

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies

The Aftermath

In October 2008, the Swiss government tried to bail UBS out of the liquidity crisis by buying a 9.3% equity stake in the bank through mandatory convertible notes with a coupon rate of 12.5%, thus pumping in US$ 5.2 billion...

Exhibits

Exhibit I: UBS - Three Year Income Statement (2006-08)
Exhibit II: UBS - Organizational Chart
Exhibit III: A Note on Credit Default Swaps
Exhibit IV: UBS - Risk Management and Control Principles (2007)

Custom Search

Marketing Financial Products
Textbooks Collection

Case Studies in Finance Volume-IV
Work Book - Rs. 750
Workbooks Collection

Case Studies in Finance Vol III

Case Study Volumes Collection