UBS 'Splains It All For You

While I haven't read the UBS document, Big Pic did.

Seems that United Bank of Switzerland (UBS) took a $37Billion writedown. That caused a fuss (!!) among the shareholders.

BigPic:

For what you would expect to be a dry report, it is absolutely compelling reading. It explains much more than the subprime fiasco. The report implies that management didn't really understand what the hell they were getting into with their purchases of Warburg/Dillon Read Capital Management. This unit eventually became UBS' internal hedge fund (it has since been shot [sic] down).

I wonder if management ever truly understands the nuts and bolts of these large acquisitions. We will find out if JPM knew what they were getting into getting the Fed into [sic] with the Bear Stearns (BSC) acquisition.

Hmmmmmm. Aside from the syntax, you get the idea, right?

BigPic detects the odor of McKinsey & Co. here. Recall that McKinsey was a "consultant" to Enron...which in and of itself should have put McKinsey where Arthur Anderson is.