International financial markets Group Switzerland Eric Iriajen Leopold Hensel Shin Yuan Huang Vanish Patel Sana Usmani Uni...
AgendaSwitzerland in the financial Crisis 1        Switzerland’s Economic Structure 2        Business Freedom 3        Fin...
Switzerland’s Economic StructureKey NumbersGross Domestic                           535.65 billion CHF (2009)Product (Rea...
GDP compositionSource: CIA World Bank4 - Alphas takeover of Baldor   November 7th, 2011
Global financial impact on SwitzerlandIndex of Economic Freedom                                General description        ...
Economic SituationGraph Compare6 - Global Financial Markets Presentation - Switzerland   November 7th, 2011
The Financial Sector(1/2)Is important locally…                   Some numbers                               …and the struc...
The Financial Sector(2/2)…as well as globally             General description            The BIS and the WEF are headquar...
Government Intervention (1/2)General description and Switzerland              General description                         ...
Government Intervention (2/2)  Swiss stimulus compared to other countriesSources: Non banking: Economic World (until Dec 2...
The UBS case (1/3)UBS in 2007 and how the drama started                      Situation 2007                               ...
The UBS case (2/3)  The Stock of UBS since 2007                                                               4th quarter ...
The UBS case (2/3)  The Stock of UBS since 2007        Credit suisse stock                              UBS stockSource: w...
The UBS case (3/3)The Stock of UBS since 2007                                                                 SNB         ...
The Swiss Franc Spekulation  The Euro/CHF Excange Rate since 2007                                                         ...
Economic future of Switzerland                                                   Assumptions   Oijop   Still one of the ...
References•    CIA worldfact book, (2011). Switzerland. [Online] Available from     https://www.cia.gov/library/publicatio...
Thank you for your attention!                                        Time for discussion and questions18 - Global Financia...
Upcoming SlideShare
Loading in …5
×

Switzerland and UBS Scandal

2,251 views

Published on

A group presentation based on the Swiss banking system, comparison to the EU bailouts / Quantitative Easing and a company profile of UBS.

Published in: Economy & Finance
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,251
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
12
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Switzerland and UBS Scandal

  1. 1. International financial markets Group Switzerland Eric Iriajen Leopold Hensel Shin Yuan Huang Vanish Patel Sana Usmani University of Westminster, London, November 7, 2011
  2. 2. AgendaSwitzerland in the financial Crisis 1 Switzerland’s Economic Structure 2 Business Freedom 3 Financial Institutions 4 Government Intervention 5 The UBS Case 6 The Euro Crisis and the Speculation against the Swiss Franc 7 Economic Future of Switzerland 8 References2 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  3. 3. Switzerland’s Economic StructureKey NumbersGross Domestic  535.65 billion CHF (2009)Product (Real)  68’662 CHF GDP p.c. (2009) – CHF/Pound: 1,4/1  Primary: 3.7%Employment  Secondary: 22.85%Structure  Tertiary: 73.5 %  Most important: pharmaceuticals, food, watches, tourism, mechanical engineering and financial servicesExport  147.4 billion Euro in 2010 (52.5% of GDP)  14.6 billion EUROTrade Surplus  Average unemployment rate 2009: 2.8%Employment  4.547 million people labour forceSources: www.bfs.admin.ch, epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/3 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  4. 4. GDP compositionSource: CIA World Bank4 - Alphas takeover of Baldor November 7th, 2011
  5. 5. Global financial impact on SwitzerlandIndex of Economic Freedom General description  What is Economic Freedom?  Switzerland is 5th in the 2011 world ranking, 1st out of 43 countries in the European region  Comparison Switzerland, United Kingdom and United States.5 - Alphas takeover of Baldor April 2011
  6. 6. Economic SituationGraph Compare6 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  7. 7. The Financial Sector(1/2)Is important locally… Some numbers …and the structure  6% of the workforce is  Mainly insurances, banks and – responsible for 12% of the Swiss newly - hedge funds GDP  Bank System: Universal banks  Responsible for a net surplus of (UBS and CS), cantonal banks, 12 billion CHF on the balance and foreign controlled banks  of payment 327 institutions  Swiss Banks have 11.5 trillion  Customer confidentiality and francs AuM political stability  Swiss banks hold over 2,000% asset value of GDP Source: http://www.swissworld.org/7 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  8. 8. The Financial Sector(2/2)…as well as globally General description  The BIS and the WEF are headquartered in Switzerland  Known as a global tax evasion hub  serious conflicts with OECD countries  BCBS  Basel IIIShares of AuM in international private banking, 2009Switzerland 27%United Kingdom 25%Luxemburg 11%Caribbean 12%Singapore and Hong Kong 10%United States 8%Other 7%8 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  9. 9. Government Intervention (1/2)General description and Switzerland General description Switzerland  Quantitative Easing is a  Secured savings up to form of government 100’000 CHF pp intervention  Saving of the UBS by the  Method of monetary policy State and the national  Rarely occurs Bank  Global financial crisis  Barely deficit spending in effect opposite to other countries9 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  10. 10. Government Intervention (2/2) Swiss stimulus compared to other countriesSources: Non banking: Economic World (until Dec 2010) Banking: Bloomberg (until Sept 2011) 10 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  11. 11. The UBS case (1/3)UBS in 2007 and how the drama started Situation 2007 Risk factors  Largest asset manager in the  High exposure in American world 3.3 trillion AuM junk bonds  Change from pure wealth  Threatened by upcoming tax management to investment problems with USA and EU banking  Big share of swiss economy  Biggest bank in Switzerland and significant impact on economy and culture Solution: Saved by external investors and the state of Switzerland11 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  12. 12. The UBS case (2/3) The Stock of UBS since 2007 4th quarter 08, UBS 1. April UBS announces net loss of announce loss of 8 billion and outflow 12 billion for first of 80 billion in assets quarter 16. Oct. the government Kweku Adoboli announces to looses 2,8 billion save UBS frncs 10. Dec 2007 UBS announces Capital raiseSource: www.comdirect.de 12 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  13. 13. The UBS case (2/3) The Stock of UBS since 2007 Credit suisse stock UBS stockSource: www.comdirect.de 13 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  14. 14. The UBS case (3/3)The Stock of UBS since 2007 SNB Loan max. 54 Ownership bad bank - billion 1 CHF Buy back option Max 6 billion equity Cash UBS Bad Bank Illiquid assets Mandatory Cash convertible bonds 6 billion Government14 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  15. 15. The Swiss Franc Spekulation The Euro/CHF Excange Rate since 2007 6. Sept 2011 SNB sets a low boarder of 1,20 Oct. 2007 peak at 1,68 Since 2010 Sept. 2008 With the bad financial Lehman Crash situation of Greece as the Euro debt crisis startsSource: www.comdirect.de Aug. 2011 US loose AAA Rating 15 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  16. 16. Economic future of Switzerland Assumptions  Oijop  Still one of the wealthiest nations in the world, with a high chance of keeping that place  A risk factor although is, that its economy depends heavily on the world economy  Importance of offshore banking is unclear.  The exchange rate plays a big role, since over a half of its exports go into the EU.  SNB Intervention bears risk of inflation. November 7th, 201116 - Global Financial Markets Presentation - Switzerland
  17. 17. References• CIA worldfact book, (2011). Switzerland. [Online] Available from https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html [Accessed 31/10/2011]• BBC, (2011). Financial Glossary. [Online] BBC. Available from <http://www.bbc.co.uk/news/business-15060416> [Accessed 03/11/2011]• Schweizer Bundesamt fuer Statistik . [Online] Available from http://www.bfs.ch• Trading Economics, (2011). Switzerland Interest Rate. [Online] Trading Economics. Available from <http://www.tradingeconomics.com/switzerland/interest-rate> [Accessed 04/11/2011]• Economic Watch, (2010). Spain Stimulus package. [online] Economic watch. Available from http://www.economywatch.com/economic-stimulus-package/spain.html [accessed 06/11/2011]• Index of Economic Freedom, (2011). Switzerland. [Online] Available from http://www.heritage.org/Index/Country/Switzerland [Accessed 25/10/2011]• Swiss World, (2011). Switzerland Economy. [Online] Available from http://www.swissworld.org/en/economy/?gclid=CNSa8rPKkawCFQ8ntAodbS4KnQ [accessed 28/10/2011• Trading Economics, (2011). Switzerlnad GDP Growth chart. [Online] Available from http://www.tradingeconomics.com/switzerland/gdp-growth [Accessed 28/10/2011]• Bank of International Settlements, (2011). Basel III. [Online] Available from http://www.bis.org/bcbs/basel3.htm [Accessed 01/11/2011]17 - Global Financial Markets Presentation - Switzerland November 7th, 2011
  18. 18. Thank you for your attention! Time for discussion and questions18 - Global Financial Markets Presentation - Switzerland November 7th, 2011

×