Here We Go Again - UBS Run On The Bank

UBS May Target Capital Increase of SF16 Billion, Sonntag Says

By Carey Sargent

March 30 (Bloomberg) -- UBS AG may ask shareholders to approve a capital increase of as much as 16 billion Swiss francs ($16.1 billion), the Sonntag newspaper reported, citing people it didn't identify.

<b>The bank needs that amount of money to keep its Tier 1 capital ratio at 12 percent,</b> the newspaper said. UBS will also report a first-quarter loss after writing down as much as 15 billion francs on the value of debt securities, Sonntag said.

<b>UBS is suffering from a cash drain after customers in the Zurich area alone removed funds worth 700 million francs as of March 26,</b> Sonntag said.

 

I wonder where they put the money? Credit Suisse?

 

This can't be the only situation. Where there's smoke, there's fire.

 

Where there's UBS, there's BS.

 

Yep, get your money out before they help themseves to another 5% to shore up their balance sheet.

ING Asset Management arm In New Zealand has reportedly frozen withdrawals from money market funds.


Lucky this was all "contained".