UBSboss wants to buy its way out of government bad bank deal

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ref="http://www.cityam.com/company/ubs">UBS chief executive Oswald Grubel yesterday said that the bank is aiming to sever its ties with the Swiss government by buying its way out of a &ldquo;bad bank deal&rdquo;.<br /><br />UBS is currently paying expensive rates on the bad bank scheme for protection against big losses on its toxic assets. But its plans to ditch the scheme has caused a row between the bank and Swiss financial regulator Finma who have called it &ldquo;out of the question&rdquo;. <br /><br />&ldquo;We have to make an offer to buy back those assets&rdquo; Grubel told the Financial Times.<br /><br />UBS has been hit particularly hard by the credit crisis, suffering from big losses in the US sub-prime mortgage market. The bank reported a loss of SFr1.4bn (&pound;830m) between April and June.