When rated in terms of importance, the report from UBS on $37 billion in write downs probably bears no small resemblance in Zurich to the Warren Commission report in Washington, D.C. The Warren Commission was, of course, put together by Kennedy’s successor. Ironic, then, that the UBS report would be assembled by Peter Kurer, UBS’ legal counsel and the man tapped to succeed now disgraced UBS Chairman Marcel “Thank you, Herr Trump” Ospel. In this case, however, Oliver Stone will be pleased to know that the damage was done by a three-unit, classic, triangle ambush which, according to the Wall Street Journal, was composed of “in-house hedge fund Dillon Read Capital Management, which was closed last year after racking up losses; the collateralized debt obligation, or CDO, desk; and the asset-backed trading book.”
Of course, Oliver Stone wouldn’t be happy with us if we didn’t find a patsy. UBS is happy to comply and offer up Huw Jenkins, who, in as close to a “he acted alone” conclusion as we are likely to read, was faulted for “…keeping bank management and Chairman Marcel Ospel in the dark about the losses until August, several months after Dillon Read had been shut down.”
Peter Kurer is expected to be sworn in as President during a hurried ceremonywin shareholder approval for the Chairman’s slot on Wednesday.
UBS Issues Excerpt of Report On How Losses Came About [WSJ]