ZURICH: UBS made a huge loan to Blackrock so that the US asset manager could buy US$15 billion of distressed assets from the Swiss bank, easing the strain on UBS balance sheet, but not freeing it from the risk.
In a deal similar to one used by US bank Citigroup to offload subprime assets, UBS said yesterday that it had provided 75% of the funding used by US-based Blackrock to buy the portfolio.
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