Swiss banking behemoth UBS on Monday announced that its latest subprime-linked writedown of about $19 billion will have no impact on its operations in India, which it claimed to be an important market in Asia.
"I don't see any link between what is announced today in terms of a fresh writedown of $19 billion and our operations in India, which is a major market for UBS in Asia," a UBS executive in Zurich told
Business Standard.
UBS is completely focused on India and especially on gaining a foothold in the wealth management space. The Swiss bank has operation centers in Hyderabad and is entering into projects in Mumbai, the executive added. The latest subprime calamity struck deep wounds on UBS' management, forcing its Chairman Marcel Ospel to step down.
He will be succeeded by Peter Kurer, a long-serving UBS banker.
Coming close on the heels of a $18.4 billion writedown last year, the latest blow has caused a huge loss of about $12 billion (Sfr 12 billion) in the first quarter this year, according to a statement emailed by the UBS to reporters.
Faced with the worst losses since its creation ten years ago, UBS has now been forced to seek $15 billion in a rights offer so as to replenish
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