Posted: 8/20/2009 7:33:49 AM

By: Big Swiss Profits

“The exit is a positive signal, as it shows the confidence of the Swiss government regarding the situation of UBS,” Stefan Schuermann, an analyst at Vontobel "The placement increases UBS’s flexibility in rebuilding its franchise and will help to keep or hire key employees.”

UBS was 75 centimes, or 4.5 percent, higher at 17.49 francs by 12:20 p.m. in Swiss trading. UBS shares have risen 16 percent since the U.S. and Switzerland said they had reached an agreement in principle on the tax lawsuit on July 31.

http://bloomberg.com/apps/news?pid=20601087&sid=aVh0D6cQFqx4


"The government expects to make a “significant profit” on the stake sale, Siegenthaler said. The offering was 4.5 times oversubscribed, he said."

Posted: 8/21/2009 5:19:51 AM

By: What are you smoking?

They intended to sell the shares all along, doing private placements through Credit Suisse once UBS was back on solid footing. Everyone knew that the stock price would go up as soon as UBS announced a settlement.

The only person who seems surprised is you.

Posted: 8/20/2009 9:02:38 PM

By: Coupons

The Swiss government knows the inside of UBS better than anybody; if they are selling at any price it tells you where they think the stock price is going.

Posted: 8/20/2009 3:07:20 PM

By: $1.1 bln profit

Switzerland nets $1.1 bln from UBS stake sale

http://www.marketwatch.com/story/switzerland-nets-11-bln-from-ubs-stake-sale-rpt-2009-08-20?siteid=yhoof2

Posted: 8/20/2009 9:23:00 AM

By: knightmare3000

I think that it could also be that the government is being pressured by the UBS debacle to wash their hands of the whole thing or by pressure brought to bear on them by US treasury. it may be positive. but the Swiss government is getting out of the whole thing. it improves their credibility after this in matters about forcing banks to disclose names

Posted: 8/21/2009 4:13:57 PM

By: All wrong as usual

"In other words, the Swiss banks will now have to compete on a much more level playing field with the U.S., U.K., and German banks, etc., something that may be difficult considering their high fees and famously restrictive bureaucracy."

Yep, I guess that is why the UBS stock is surging on the news (up 16% in 4 days):

http://finance.yahoo.com/echarts?s=UBS#chart1:symbol=ubs;range=5d;indicator=volume;charttype=line;crosshairn;ohlcvalues=0;logscalen;source=undefined

And why the US$ is becoming worthless vs the Swiss Franc.

http://finance.yahoo.com/q/bc?s=USDCHF=X&t=5d&ln&z=m&q=l&c=

Good call!

Posted: 8/21/2009 2:34:30 PM

By: Jinga

Since probably most of this money is either drug money or money embezzled from poorer countries, it is difficult to imagine that it will hurt the U.S.'s competitive advantages. Plus, it tells would-be evaders the from other industrialized nations that the Swiss are ready, willing, and able to sell them out, as they have just done the 4,450 Americans, in addition to the several hundred sold out before.

In other words, the Swiss banks will now have to compete on a much more level playing field with the U.S., U.K., and German banks, etc., something that may be difficult considering their high fees and famously restrictive bureaucracy.

Posted: 8/21/2009 12:44:59 PM

By: Still smoking?

I grant you that point. I'm not here to defend UBS. But you made a rather silly remark about the Swiss National Bank that simply isn't true.

Knightmare makes an important point that most Americans don't quite get: The American deposit base is only 5% in Switzerland. The other 95% of US $3 trillion in deposits comes from elsewhere. It doesn't surprise any of us here that the American clients of UBS may have been thrown under the bus... It was easy to do.

The lesson from this has less to do with Switzerland than it does have to do with a universal principle: If you are engaged in "poor man's tax planning" (tax evasion), you are setting yourself up... To be blackmailed or fingered by a rogue bank employee or to be named on a list turned over by one or another foreign government.

This doesn't make the US response any smarter; while Americans continue to beat each other up over taxes, foreigners will profit from the advantage. I say let the Americans continue to clobber each other into irrelevance.

Posted: 8/21/2009 10:41:49 AM

By: Translation

"as soon as UBS announced a settlement"

Translation: "as soon as UBS sold out another 4,450 of its clients"

Posted: 8/21/2009 9:43:38 AM

By: knightmare3000

I agree with abc@abc.com

I have personally visited Switzerland. My observations of the tour guides and the government offices visited is this:
a. they have a 'holier- than- thou" attitude for anyone not Swiss --especially Americans

b. it always appears that there is a "hidden agenda" or a "secret something going on"-- especially at the government levels. they hide their actions quite well-- especially around Americans

Posted: 8/23/2009 1:44:13 AM

By: He Who Laughs Last

Hmmmmm... A quick fact check shows that Switzerland's GDP is almost double the GDP of New Jersey. That's pretty impressive for a country with a population the size of West Virginia. In fact, I would venture to guess that our per capita GDP exceeds anything you will find in any single US state.

If it were all coming from milk and cheese, we would have trouble reaching those numbers. Feel free to review the listed shares on the Swiss Stock Exchange to see all the high tech and pharmaceutical firms operating here, and you'll start to get an idea why we have such a high GDP relative to New Jersey.

And since you raised the drug money issue, just how much of New Jersey's GDP owes itself to narcotics and criminal enterprises? I'm confident Bank of America knows less about its average account holder there than any Swiss bank would its own.

Every time you emerge from under your rock to spout nonsense, expect to be corrected on this board.

Posted: 8/21/2009 7:29:51 PM

By: Sure

Sure! It is easy to laugh when your GDP is less than New Jersey.

Watches or cheese anybody? Yodel-eh-eey-whoo!

Posted: 8/21/2009 4:17:34 PM

By: The Smoke is Thick

We're all having a good laugh at your last post... America's "competitive advantages" is a really good one!

Oh, the Swiss Franc is at an all-time high against your US dollar. Tell yourself whatever you want to hide the truth about the sad state of your country's finances. Call it drug money (when it's not), say we're all farmers and milk maids, please... just do what Americans do best: insulting everyone else for their own problems while 95% live off the backs of 5%.

We'll take over from here!