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Swiss trust in UBS eroding

Sep 21 2008 19:35

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Geneva - The Swiss people's trust in the country's banking giant UBS has been eroding following the sub-prime crisis, a survey commissioned by Swiss tabloid newspaper SonntagsBlick indicated on Sunday.

Only 35% of Swiss people surveyed on September 19 said they still trusted UBS, compared to 41% of those polled in early February.

About 60% now said they did not trust the bank, while in February, the corresponding figure was 48%.

The survey contrasted with the level of confidence in Swiss banking overall, as three in four people said they still trusted Switzerland's banks in general.

The results appear to reflect customers' actions.

In the second quarter of the year, UBS saw net new money outflow of some 43.9 billion francs as customers took their assets elsewhere.

However, Raiffeisen reported during the first half of the year new money inflow of six billion francs. Likewise, Zuercher Kantonalbank reported net new money inflow of 6.7 billion francs.

UBS is among one of the worst-hit banks worldwide by the sub-prime home loans crisis, having written down about 42.5 billion dollars on its sub-prime-related assets since the beginning of the turmoil.

- AFP

 
 
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