Who'd buy UBS?

18 August 2008

1 minute read

Whether or not UBS really does plan to sell its investment bank is a moot point. Who'd buy it if UBS were to sell is even more debatable.

In different circumstances, Barclays might be a possibility: its fixed income prowess would sit well alongside UBS's expertise in equities. However, with UBS's subprime woes still mounting and Barclays still operating at capital ratios below its peers, a big purchase looks unlikely.

Who else is in the running? And should UBS be looking to offload its investment bank in the first place?

At least one analyst thinks not: "There is no reason I can see why the investment bank would be better off somewhere else other than with UBS," says Matthew Clarke at Keefe, Bruyette & Woods. "The problem is the reputational damage to the investment bank as inflicted in the short term."

Post your thoughts below...

AUTHORSarah Butcher

Global Editor

Jc
Jcmoron
27 August 2008
Ive working for UBS for nearly 2 years. My father worked for Credit suisse during 5 years. What I can tell is that Im pretty sure that when a non-swiss bank tries to acquire UBS, then UBS and CS will merge to create a national champion (but as a defensive measure). Time will tell...
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Ma
Master of the Universe
22 August 2008
Logic is one thing: where the markets are heading is another matter altogether. As the crisis deepens, "subprime" will be replaced by another buzzword, which I believe will cut into the very heart of Basle II, and how we perceive banking risk in the credit scorched environment. Mark my words - you ain't seen anything yet!
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An
Anon
21 August 2008
I admire the optimism on this site for UBS. However, the problem is no one knows the full extent of UBS' losses and there are likely to be further write downs for UBS which is already the biggest European loser in the subprime market. At best UBS will sell off its investment bank, at worst it will become nationalised. A national banking champion will always get government support, to minimise the impact on the economy if the bank collapsed. It's easy to believe there will always be a UBS, however, it is likely to be in a very different form than today...
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EY
E Yuliani
21 August 2008
UBS has been struggling, but I don't think it needs to give up and sell itself to another bank. I am very sure UBS will manage to survive and get back on its foot. It is a matter of time. More over, in this situation, most (big) investment banks are in trouble too. Any small banks can afford to buy UBS???
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Re
Repo Bad Boy
20 August 2008
UBS will soldier on as a top tier bank - make no mistakes on that.
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