billion, versus the $1.7 billion average of 15 analyst estimates in a UBS-conducted poll. The world's largest wealth manager also reported inflows of $42 billion in the first three months of the year. Its flagship wealth management division received $28 billion in net new money, $7 billion of which came in the last ten days of March. In its annual report last year, UBS described how it had been an issuer and underwriter of U.S. residential mortgage-backed securities in the five years to 2007. In November 2018, U.S. authorities commenced legal action against the Swiss bank, seeking penalties for its involvement in scores of such deals. UBS subsequently lost a court case on the matter. Scandal-plagued Credit Suisse was brought to its knees after clients left in droves amid global banking sector turmoil. Under the deal hastily engineered by Swiss authorities, UBS agreed to take it over for 3 billion Swiss francs and to assume up to 5 billion francs in losses. Credit Suisse said on Monday that 61 billion francs ($68 billion) in assets had left the bank in the first quarter and that outflows were continuing, underscoring the challenge faced by UBS. During the global financial crisis, it was UBS, not Credit Suisse, that took the lion's share of support from the state.
At that time, the Swiss central bank lent more than $54 billion to a vehicle that UBS used to offload problem debt, including subprime loans. (Reporting by Noele Illien; writing by John O'Donnell; Editing by Edwina Gibbs)
