The trust of the Swiss in the banking giant UBS has been undermined following the crisis in the subprime mortgage market, a survey by the Swiss tabloid SonntagsBlick published on Sunday revealed.
Only 35 percent of Swiss respondents, surveyed on September 19, stated that they still trust UBS, compared to 41 percent surveyed in early February. About 60 percent said they do not trust the bank, while in February that figure was 48 percent. The survey deviates from the level of trust in the Swiss banking system in general, as three out of four people said they still trust Swiss banks. These results seem to reflect consumer movements.
In the second quarter, UBS recorded a net outflow of new capital amounting to 43.9 billion francs, after clients moved their assets to other institutions. However, Raiffeisen reported an inflow of new capital in the first half of the year amounting to six billion francs. Similarly, Zuercher Kantonalbank reported a net inflow of new capital of 6.7 billion francs. UBS is one of the banks in the world hardest hit by the subprime mortgage crisis and has written off assets related to these loans worth 42.5 billion dollars since the onset of the turmoil. (H)
