UBS has issued a Shareholder Report detailing the key facts relating to the firms positions and losses in the US subprime residential mortgage sector through 31 December 2007.
This Report, which provides an overview of a report which was submitted earlier to the Swiss Federal Banking Commission (EBK), is available on UBS website at www.ubs.com/agm.
Amongst other things, the Report summarises: which businesses were affected by the losses; the business models and growth initiatives pursued in those businesses; how the losses developed in the relevant businesses; the implementation of Risk Management and Risk Control in those businesses; and the key findings related to the causes of the losses.
The Report identifies the losses as originating principally from positions held within three businesses: the internal alternative asset management arm, Dillon Read Capital Management (DRCM); the Investment Bank’s (IB) Rates business (CDO Warehouse and CDO Super Senior Positions held on the CDO Desk); and the ABS Trading Portfolio managed by the IBs Foreign Exchange/Cash Collateral Trading (FX/CCT) division.
The report filed with the EBK was prepared by UBSs Group General Counsel and Group Internal Audit. They were assisted by US law firm Sullivan and Cromwell LLP, Swiss law firm Homburger AG and PricewaterhouseCoopers.
KPMG Ltd, Zurich, has read the Shareholder Report and the Report to the EBK and determined that, in their professional judgement, the Shareholder Report contains a reasonable summary of the information that UBS included in their report to the EBK.