Important Events:
Switzerland and the World

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

Appenzell-Ausserrhoden is the second Swiss Canton to loose its Cantonal Bank. UBS takes it over.

Heavy attacks are launched against Switzerland and its banks from the side of the World Jewish Congress (WJC), New York, and from the US-Senator Alfonse D'Amato because of the neutral country's presumed role during WW2. Key issues are: the refugee policy of the country, the gold trading by the SNB with the Third Reich, and the dormant accounts of holocaust victims and their heirs at Swiss banks.

In New York a "Memorandum of Understanding" is signed by the Swiss Banks, the World Jewish Congress (WJC), the World Jewish Restitution Organization (WJRO) and the Jewish Agency.

The Swiss Bankers Association sets up the "Volcker Committee" (official name: "Independent Committee of Eminent Persons - ICEP") to investigate the claims of the WJC.

The Swiss government sets up a committee of historians, the "Bergier Commission" (official name: "Independent Commission of Experts Switzerland - Second World War") to investigate the role of neutral Switzerland in WW2.

In New York several class action law suits are launched against UBS, SBC, Credit Suisse and Swiss National Bank.

Trading starts at the new electronic exchange SWX-Swiss Exchange in Zurich.

	Georges Blum

Georges Blum succeeds Walter Frehner as Chairman of SBC.

Marcel Ospel

Marcel Ospel is appointed President of the Group Executive Board.

SBC introduces the single-class registered share structure.

SBC refocuses its organizational structure. It now consists of four divisions: Domestic Division, SBC Private Banking, SBC Warburg (Investment Banking) and SBC Brinson (Asset Management).

SBC takes over from its subsidiary BSI - Banca della Svizzera Italiana the Retail and Corporate Banking business. BSI in future will concentrate on Private Banking only.

SBC sets aside a special provision of 2.8 billion CHF for credit risks in the domestic loan portfolio. Thereby, the SBC Group for the year 1996 shows a loss of 2.0 billion CHF instead of a profit.

Instead of a dividend SBC repaid capital to the shareholders in the amount of 10 CHF per share. Consequently, the nominal value is reduced from 50 CHF to 40 CHF per share.

SBC acquires Standard Chartered Bank's international private banking business. The acquisition positions SBC Private Banking within the top two players in Asia as measured by AUM.

UBS acquires the former Cantonal Bank of Appenzell-Ausserrhoden, founded in 1877, and integrates it completely.

Robert Studer

Robert Studer is elected a member of the Board of Directors against the heavy opposition of the Martin Ebner-Group, the largest shareholder of UBS. Studer succeeds Nikolaus Senn as Chairman of UBS.

	Mathis Cabiallavetta

Mathis Cabiallavetta is appointed President of the Group Executive Board.

UBS acquires and integrates the EKL Ersparniskasse Langenthal.

UBS sets up UBS (Italia) SpA, Milan, for local Private Banking purposes.

UBS Italia Investimenti e Finanza SpA is renamed into UBS Capital SpA, Milan.

UBS opens a Securities branch in Seoul to replace the Rep. Office of 1992.

UBS establishes Representative Offices in Budapest and Warsaw.

UBS sets aside a special provision of 3 billion CHF for credit risks in the domestic loan portfolio. Thereby, the UBS Group for the year 1996 shows a loss of 0.3 billion CHF instead of a profit.

Nevertheless, an unchanged dividend is paid to shareholders out of reserves.