Shareholder demands audit into UBS write-downs

Corporate governance foundation,
Ethos, and
Swiss SRI have called for an audit to explain events that led to the devastating
UBS write-downs related to sub-prime issues.

The call for the audit comes 10 days after UBS announced that it would write
down up to $10bn worth of holdings and warned that it saw a loss across the
group for the fourth quarter, as well as a possible net loss for the full year.

‘As a long term UBS shareholder, Ethos is expecting detailed information
regarding the mechanisms that led to the write-offs,’ Geneva-based Ethos said.

Ethos has asked for additional disclosures and a special audit to be added to
the agenda of an extraordinary general meeting with shareholders scheduled for

Ethos expects the additional information to shed light on potential risk
management and dysfunctional risk controls.

Further reading:

UBS failed to comprehend sub-prime risks

UBS takes extra $10bn sub-prime hit

UBS bank battered by sub-prime write downs

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