SNB says fund with toxic UBS assets lost $1.7 bn

ZURICH: The Swiss National Bank said on Wednesday that the fund with toxic UBS assets lost nearly $1.7 billion by the end of 2008.

"Overall, the stabilisation fund showed a loss of $1.69 billion for the year ended 31 December 2008," the SNB said.

"This loss exceeds the stabilisation fund's equity contribution from UBS by roughly $50 million," it said.

UBS, which is struggling to rebuild its once powerful brand after massive investments into risky US assets forced it to make more writedowns than any other European bank, accepted a 6-billion-Swiss-franc shot in the arm from the Swiss government in October.

At the same time, the SNB announced the fund for illiquid securities and other troubled assets from UBS, which would involve a long-term financing and orderly liquidation of the toxic assets.

In February, the SNB said it had cut the size of the StabFund by a third to just under $40 billion.