Important Events:
Switzerland and the World

Important Events:
UBS AG

1 January sees the introduction of the euro...

...as the single currency in Austria, Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Its initial exchange rate is approx. 1.18 USD and 1.61 CHF.

On 7 January in Washington the US Senate opens the impeachment trial against President Bill Clinton over the Monika Lewinsky affair. It is the first US case of its kind for 130 years. On 12 February the Senate clears Clinton of perjury and perverting the course of justice.

All EU Commission members, including President Jacques Santer, resign on 16 March following charges levied by a group of experts of mismanagement, lack of control and nepotism.

The Dow-Jones Index breaks through two barriers for the first time ever, rising above the 10,000-point level on 16 March and the 11,000-point level on 3 May, reaching 11,014 points.

The Swiss Bertrand Piccard becomes the first person to circumnavigate the world non-stop in a hot air balloon. Starting in Switzerland he flies for 19 days before landing in the Egyptian desert on 20 March with his English co-pilot Brian Jones.

On 24 March Nato begins air strikes against Yugoslavia, which last until June.

The Swiss people vote in a referendum on 18 April in favour of revising the Swiss Federal Constitution of 1874 with a majority of 59.2%.

On 22 September the Russian army begins an offensive in Chechyna. The war continues for the remainder of 1999 and culminates in the total destruction of the Chechen capital Grosny.

The World Trade Organization (WTO) ministerial conference in Seattle ends inconclusively on 4 December. The 134 member countries agree to the progressive liberalization of international trade. The meeting is overshadowed by violent clashes and riots.

On 6 December in Zurich the Volcker Committee (Independent Committee of Eminent Persons, ICEP) publishes its final report on the actions of Swiss banks in relation to dormant accounts during and after the Second World War. The banks receive a clean bill of health - they did not deliberately embezzle the assets of Holocaust victims or intentionally destroy files.

On 10 December the Bergier Commission (Independent Commission of Experts: Switzerland - Second World War, ICE) publishes its final report on Switzerland's refugee policy during the Second World War. It strongly criticises the Swiss authorities for turning back refugees at the border. Some of its conclusions are controversial. The subsequent discussion in the Swiss national press rages wide and long, casting strong doubt on the ICE's conclusions. The Commission is accused in particular of not placing the refugee policy in an international context, the general feeling being that Switzerland offered to take more refugees than other countries, such as the US.

On 26 December Hurricane "Lothar" sweeps a path of destruction through Europe and Switzerland, leaving damage to forests in Switzerland alone of over 1 billion CHF and registering wind speeds of 240 km/h.

On 31 December Russian president Boris Yeltsin resigns suddenly, handing over interim power to Prime Minister Vladimir Putin.

Alex Krauer

The Board of Directors announced on its meeting on January 27, that Alex Krauer would retain his position as Chairman until the Ordinary General Meeting of UBS in the year 2002 to ensure continuity at the head of UBS’s supervising body.

UBS and SwissLife/Rentenanstalt terminate their cooperation agreement which existed between Union Bank of Switzerland and SwissLife/Rentenanstalt since 1995. UBS AG sells its 25% holding in SwissLife/ Rentenanstalt. At the same time Rentenanstalt acquires 100% of the former joint venture "UBS Swiss Life" (February 19).

On March 5, International trade finance of UBS is sold to Standard Chartered Plc for 300 million CHF. The trade finance business in Switzerland is now managed by the Private and Corporate Clients divison.

Take-over of Bank of America's Private Banking activities in Europe and Asia by UBS on March 11. Total client business volume involved exceeds 6 billion USD (March 11).

UBS announces the selling of its 75% position in the Argor-Heraeus SA to W.C Heraeus, Hanau, Germany, which already has a 25% stake in the UBS subsidiary. Argor-Heraeus in Mendrisio, Switzerland, operates in the precious metal processing business, mainly gold (March 11).

UBS Group net-profit is 3,03 billion CHF for the financial year 1998. Overall headcount within the Group fell by 7165 to 48'011. Total shareholders' equity reached 32,4 billion CHF (March 12).

Senior Management changes at UBS are announced on March 12 and are implemented progressively after the Annual General Meeting of April 22.

UBS expands its market information service on the Internet for more than 120'000 financial instruments for its online price and rate information service “UBS Quotes„, established in January 1998 by former UBS. It has now 7.3 million hits per month (March 25).

In a ruling of May 1998, the Competition Commission approved the merger of UBS with SBC. One of the conditions attached stipulated that the new bank UBS AG would be required to transfer a number of retail branches in Switzerland to one or several of its rival banks. On March 29, 1999, the Commission approved the sale of twelve UBS branch offices.

The first Ordinary General Meeting of UBS AG was held on Thursday, April 22. The Board of Directors and the Group Executive Board were granted discharge. The General Meeting approved to pay a dividend of 10 CHF.

13 members of security industry, including UBS, formulate proposals for restructuring the clearing and settlement process in Europe in order to have a single integrated process of equity and debt transactions on May 25.

UBS (France) S.A. starts its on-shore Private Banking activities on June 1 in Paris.

On June 1 Warburg Dillon Read opens its new trading floor in Opfikon (Switzerland), whichs is the largest in Europe with 650 workstations spread over 4745 square meters.

UBS signs an agreement for the sale of 87 properties in Switzerland on July 28 with a consortium led by Maag Holdings Ltd. Around 70% of the properties are leased back to UBS for its own use. The total of the sale amounts to 0,88 billion CHF (June 2).

UBS publishes its environmental report for 1998-99. It is the first bank to be awarded the ISO 14001 certification for an environmental management system in its worldwide banking operations and for the bank's in-house operations in Switzerland (June 28).

September 14, UBS renews its ADR (American Depositary Receipt) program in the US, replacing the existing ones issued by Union Bank in Switzerland (1994) and Swiss Bank Corporation (1993). The new ADR program is designed to facilitate access to UBS shares for US investors.

UBS AG acquires the firm Global Asset Management (GAM) for its Private Banking Division. GAM is domiciled in Bermuda and has branches in all major financial centers around the world. GAM is a diversified asset management group with assets under management of 13.9 billion USD, mainly private clients' portfolios and private clients' mutual funds as well as institutional mandates (September 16). The transaction for the acquisition is completed on December 17.

UBS AG acquires the firm Allegis Realty Investors LLC for its Asset Management Division (UBS Brinson). The combined entity has real estate assets under management of 9.1 billion USD and is based in Hartford, Connecticut (September 16).

With effect from October 1, 1999 UBS extends its range of 24h Banking as part of its multi-channel approach.

Fund Gate, launched by UBS on October 6 gives investors direct access to a range of important information concerning UBS Investment Funds at the click of a mouse in the Internet.

At its annual Investors' Day on December 14, UBS unveils a series of initiatives: broadening of e-services in Europe, revising policy for communicating financial targets, application for SEC registration and a capital management strategy (buy-back program for UBS shares)

UBS AG, Credit Suisse Group and the two receivers acting for Biber Holding AG signed an out-of-court settlement which satisfies all claims against the two banks (December 16).