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
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.
The company posted a 1.75 billion Swiss franc
($1.49 billion) loss in the fourth quarter of 2008, erasing an entire year's profits and causing an overall annual loss of 864 million Swiss francs
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.