Consequently,
Derivative products sold ubs controversial:
UBS offered customers derivative products on the currencies that caused them important losses. Meanwhile, In question, the fall of the dollar to the announcement of customs duties last April.
This subject will be at the heart of the publication of UBS quarterly results on Wednesday. Furthermore, The bank has sold customers with risky products with which some have lost a lot of money. Furthermore, She would have even been zealous to sell these products which bring her a lot in commissions.
These derivative products allow you to regularly exchange dollars and francs at a exchange rate that is defined in advance. However, Investors earn or lose money depending on the exchange rate that is at the same time.
These derivatives are not new. Similarly, but they are very little known to the general public because they are aimed at customers who are not cold in the eyes. derivative products sold ubs controversial Nevertheless, The risks are very large, the gain potential being limited, unlike the loss potential.
Fall in April – Derivative products sold ubs controversial
However. the “Liberation Day” last April when Donald Trump announced the customs tariffs for all the trade partners of the United States, the dollar has dropped strongly. Customers then had to continue to exchange currencies at a rate that was no longer favorable to them. hence significant losses for some of them.
>> Reread: 31% for Switzerland. 20% for the EU: world shock after the increase in customs taxes announced by Donald Trump
Faced with this situation, UBS would have made a gesture to a hundred customers, according to the press. The bank does not confirm it. According to her, it is “a very small number of customers”. They would be “in a few places in Switzerland”. and “have undergone unexpected effects linked to the volatility of the market caused by American customs prices”. derivative products sold ubs controversial She says she examines each situation individually.
Change of course
If we believe the German media. the case would still cause tensions at the highest level of the bank to determine the responsibilities. These products seem to have been sold to customers who did not understand the risks or could not assume them. A manager would even have convinced a customer to mortgage his house to buy it. according to Financial Times Who also assures that UBS would have changed CAP: its managers must stop actively recommend these products.
Mathilde flour
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