Dillon Read Undertakers Show Good Enthusiasm

Author:
Publish date:
Updated on

UBS said yesterday afternoon that it feels up to task of finishing the hack job it started two years ago on Dillon Read Capital Management, its failed hedge fund, within a few months. Huw Jenkins, head of investment banking told investors, "We said the integration could take up to 12 months...from a practical point of view, I think it will be over and done within a couple of months."
The Zurich-based bank made the "decision" to shut down Dillon Read almost two weeks ago, after the fund racked up $150 million in losses primarily from the subprime market. The fact that the fund's losses contributed to lower fixed income revenue also helped bolster the decision to pull the trigger.
Dissolving Dillon Read was noted as a "major embarrassment" for the risk-averse UBS; not being able to reach this "couple of months" goal would likely only rub salt in Swiss bank's third-straight-decline-in-quarterly-profit wounds. Jenkins also said that this year, there would be a focus on "keeping a lid on costs." Related? An additional $300 million in shut down costs.
UBS: Hedge Fund to Unwind in Months [AP via Forbes]

Related