Swiss Government Makes $1.1 Billion In UBS

[Toro]

Switzerland pocketed 1.2 billion Swiss francs, or $1.13 billion, as it sold its investment in UBS AG, making it the first government in Europe to declare that a major crisis-hit bank was fit enough to have state ownership withdrawn.

The move comes less than a year after Switzerland pumped six billion francs into the lender as part of a rescue package. UBS was one of the worst-hit banks during the crisis and has written down about $50 billion in the value of so-called toxic assets.

On Thursday, Switzerland converted a note that gave it a 9.3% UBS stake and immediately sold the 332.2 million shares at 16.50 francs each, a 1.4% discount to the stock's closing price Wednesday. The government said it earned an annualized return of 30% on the 10-month investment.

"This stabilization program is notable as it is the first program thus far to clearly demonstrate that it has generated attractive returns for the capital that was invested by tax payers," said Marco Illy, Credit Suisse Group AG's Swiss investment-bank head. Credit Suisse, which advised the government on how to exit from UBS, was in charge of the sale alongside UBS and Morgan Stanley.

Switzerland's Profit on UBS: $1.13 Billion - WSJ.com

 

[Care4all]

good news...

was our lending done in a similar manner as their gvt lending/bailout?

 

[Polk]

Our assistance to banks included equity stakes for the Treasury, so similar upside is possible.

 

[Paulie]

Our assistance to banks included equity stakes for the Treasury, so similar upside is possible.

Yes, I can't wait for OUR 1.1 billion to help bring that deficit right back down

 

[xsited1]

Swiss Government Makes $1.1 Billion In UBS

How wonderful:

The decision to sell the stake was announced late Wednesday, hours after the government signed an agreement with the United States under which UBS will disclose the names of 4,450 American clients suspected of hiding assets in Swiss accounts. In return, Washington agreed to drop a civil case against the Swiss bank seeking the handover of some 52,000 client names.

The disclosure is likely to prod some wealthy Americans to come clean on their secret accounts before the IRS has a chance to prosecute them for tax evasion.

 

[Toro]

The US government made a 26% annualized return on its investment in Goldman Sachs. The current investment in Citigroup is something like $20-$30 billion in the black.

 

[Paulie]

The US government made a 26% annualized return on its investment in Goldman Sachs. The current investment in Citigroup is something like $20-$30 billion in the black.

So I guess a health care bill will be a little less expensive to the taxpayers now