Important Events:
Switzerland and the World

Important Events:
Swiss Bank Corporation (SBC)
Union Bank of Switzerland (UBS)

The European Monetary System - EMU goes through a crisis. The Italian Lira and the Pound Sterling drop out.

The Cantonal Bank of Berne gets into serious trouble. Outstanding loans of up to 3 billion CHF are in danger.

The "Agreement on the Swiss Banks' Code of Conduct with Regard to the Exercise of Due Diligence", originally of 1977, is renewed.

Switzerland joins IMF and World Bank.

In a nation-wide referendum the Swiss refuse on December 2nd., to join the European Economic Area, which was designed to combine EC and EFTA.

SBC takes over the Chicago based derivatives house O'Connor Associates with whom it had a strategic partnership since 1988.

Banca della Svizzera Italiana (BSI) takes over the SBC Private Banking-subsidiaries Adler & Co. AG, Zurich, Bank Ehinger & Cie. AG, Basle, Armand von Ernst & Cie. AG, Berne, and Ferrier Lullin & Cie. SA, Geneva.

SBC and Zurich Insurance Group set up a joint-venture company under the name of ZBV Beratungs- und Verkaufs-AG, Zurich.

In Paris SBC sets up two subsidiaries: Société de Banque Suisse (France) SA and SBS Gestion (France) SA.

UBS Securities (Hong Kong) Ltd., is set up.

UBS opens a Representative Office in Seoul.

UBS acquires and integrates the Bank EvK (Ersparniskasse von Konolfingen).

UBS's Region Switzerland begins to implement its new distribution policy "Marketing 2000".

The Swiss Volksbank, fourth largest Major Bank in the country, looses its independence. Credit Suisse takes it over. UBS loses out.

In November the Maastricht Treaty enters into force. The European Community (EC) develops into the European Union (EU).

In Switzerland real estate prices crash. Especially hard hit is the French speaking part of the country.

Walter Frehner

Walter Frehner succeeds Franz Galliker as Chairman of SBC.

	Georges Blum

Georges Blum is appointed President of the Group Executive Board.

SBC abolishes the participation certificates by exchanging them for bearer shares of the same nominal value of 100 CHF. At the same time, the registered shares are split 1:2 so that the new nominal value amounts to 50 CHF.

Ducatel-Duval SA, Paris, is renamed SBS Valeurs (France) SA.

The "Hypo Winterthur" (Hypothekar- und Handelsbank, Winterthur) is merged into SBC.

The Banque de Placements et de Crédit, Monte Carlo, is renamed into Société de Banque Suisse (Monaco).

SBC as the first major Swiss bank sets up an elaborate Compliance Organization within the group. Already in 1992 the function of Group Compliance Officer had been created.

The Annual General Meeting of Shareholders' decision to create an Authorized Capital and a Conditional Capital is challenged in court by the BK Vision AG. The Martin Ebner-Group in the meantime has become the largest shareholder of UBS. This law suit is the beginning of numerous legal proceedings against UBS which last until the merger with SBC is announced in December 1997.

UBS opens Representative Offices in Dubai and Bangkok.

Bank Aufina, Brugg, and Bank ORCA, Geneva, both subsidiaries of UBS specialising in consumer loans, merge and Bank ORCA ceases to exist.

UBS installs its 10'000th PC (Personal Computer).