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This is an IPO as much as it a recapitalization event for the company.
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This debt would be a form of preplanned recapitalization in the event of a financial crisis, and the infusion of capital would be with private, rather than taxpayer, funds.
To achieve this result requires a recapitalization, a debt exchange, a spinoff and share sales.
And there's a good chance one or both of those events will happen before a broader European bank recapitalization can be achieved.
"This is a recapitalization.
It is instead a recapitalization.
That initial recapitalization was necessary.
UBS has warned that, in the unlikely event the euro fell to 95 cents to the franc (it was 1.35 on Thursday), the bank would use up all its equity and require recapitalization from the taxpayers.
It also must complete a bank recapitalization.
But rapid recapitalization is likely to be required.
Failing that, "the government is responsible for recapitalization," he added.
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