UBS shareholders want audit of controls

Beleaguered Swiss bank UBS has been hit by shareholders with a demand for a
special audit into how the bank got bogged down in the sub-prime quagmire.

At an EGM yesterday shareholder activist group Ethos requested an audit into
the risk management systems of the bank, which were reputed to be among the best
in the financial industry.

‘The enormous number of writedowns prove that control mechanisms have not
worked properly,’ said Ethos head Dominique Biedermann.

Over the past year, UBS incurred $18bn (£9m) in charges over disastrous
sub-prime investments. Investors also fear fresh writedowns could emerge after
the bank revealed that its exposure to risky US investments in residential
mortgages were higher than previously thought.

Shareholders approved a request from chairman Marcel Ospel for a
cash injection

Further reading:

UBS first bank sued over sub-prime loss

Balance sheet concerns plunges UBS shares

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