http://www.ft.com/intl/cms/s/0/2f91e7a2-e380-11e0-8f47-00144feabdc0.html
Singapore investor hits at UBS ‘lapses’
By Patrick Jenkins in Singapore
Published: September 20 2011 13:21 | Last updated: September 20 2011 13:21
The biggest shareholder of troubled Swiss bank UBS has broken its silence about last week’s $2.3bn alleged rogue trading scandal, criticising the “lapses” in the bank’s controls and expressing its “disappointment and concern”.
Following a meeting with Oswald Grübel, UBS chief executive, in Singapore, the country’s GIC wealth fund – which holds a stake of 6.44 per cent, according to Bloomberg data – issued a rare statement on Tuesday, saying: “[We] discussed the alleged fraudulent trading that led to the large financial loss for UBS. GIC expressed disappointment and concern at the lapses and urged UBS to take firm action to restore confidence in the bank”.
It was also seeking details of how controls would be tightened, the statement said. But GIC stopped short of saying it would seek to sell its shareholding.
GIC is sitting on a substantial loss – close to SFr6.5bn ($7.4bn) – on its UBS stake, acquired for €11bn ($15bn) three and a half years ago. At the time, it signalled its intention to hold the investment for as long as 30 years, though recent events may have given it cause to reconsider that time horizon, some bankers said.
UBS did not respond to the GIC statement, but bank insiders pointed to the investor’s endorsement of the bank’s underlying strength.
“GIC’s view of UBS’s fundamental strength as a well capitalised bank with a strong private wealth management franchise remains unchanged,” GIC wrote.
Singapore investor hits at UBS ‘lapses’
By Patrick Jenkins in Singapore
Published: September 20 2011 13:21 | Last updated: September 20 2011 13:21
The biggest shareholder of troubled Swiss bank UBS has broken its silence about last week’s $2.3bn alleged rogue trading scandal, criticising the “lapses” in the bank’s controls and expressing its “disappointment and concern”.
Following a meeting with Oswald Grübel, UBS chief executive, in Singapore, the country’s GIC wealth fund – which holds a stake of 6.44 per cent, according to Bloomberg data – issued a rare statement on Tuesday, saying: “[We] discussed the alleged fraudulent trading that led to the large financial loss for UBS. GIC expressed disappointment and concern at the lapses and urged UBS to take firm action to restore confidence in the bank”.
It was also seeking details of how controls would be tightened, the statement said. But GIC stopped short of saying it would seek to sell its shareholding.
GIC is sitting on a substantial loss – close to SFr6.5bn ($7.4bn) – on its UBS stake, acquired for €11bn ($15bn) three and a half years ago. At the time, it signalled its intention to hold the investment for as long as 30 years, though recent events may have given it cause to reconsider that time horizon, some bankers said.
UBS did not respond to the GIC statement, but bank insiders pointed to the investor’s endorsement of the bank’s underlying strength.
“GIC’s view of UBS’s fundamental strength as a well capitalised bank with a strong private wealth management franchise remains unchanged,” GIC wrote.
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