During the commerce ministry's investigation of the complaint, the bank conceded it did not provide the plaintiffs pre-contractual information that the loan currency would be converted into
Swiss francs. The bank's position was that this was responsibility of the borrowers' legal representatives.
"With two-thirds of
Swiss franc mortgages held domestically, we expect asset quality deterioration to be moderate, despite the significant exposure," Fitch said.
Likewise, in August 2011, the
Swiss franc reached a historic high on a real trade-weighted basis, implying a substantial loss of overall competitiveness since the Bank had begun intervening.
The appreciation of the
Swiss franc against all major investment currencies resulted in substantial valuation losses, said the central bank in a statement.
The Euro was down approximately -0.5% versus the
Swiss Franc (CHF).
February 10, 2009: UBS posts a 19.7 billion
Swiss franc full-year loss, the biggest-ever for a Swiss company.
UBS was heavily exposed to the complex mortgage-backed investments hit by the credit crunch and the latest losses reflect a further 3.9 billion
Swiss franc (pounds 2.3bn) write-down on its toxic assets.
Note that a similar development is underway in Europe, specifically with the
Swiss franc. Hedge funds holding European shares are borrowing
Swiss francs and investing in European equities while also selling the euro in the forward markets.
Nevertheless, the exchange rate of the
Swiss franc against the euro has remained fairly stable.
With respect to the
Swiss franc, the Swiss authorities had chosen, in late 1991, not to take part in the German-led tightening of monetary policies in Europe to avoid aggravating Switzerland's year-long recession.