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UBS AG, major bank formed in 1998 by the merger of two of Switzerlandâs largest banks, the Swiss Bank Corporation and the Union Bank of Switzerland. Although it is derived from âUnion Bank of Switzerland,â the name UBS is not an acronym. The bank is headquartered in ZĂŒrich and Basel, Switzerland.
The Swiss Bank Corporation was founded in 1854 as the Basler Bank-Verein (Basel Bank Corporation) and became a joint-stock company in 1872. It specialized in investment banking. In 1895 its name was changed to Basler und ZĂŒrcher Bankverein when it merged with the ZĂŒrcher Bankverein (ZĂŒrich Bank Corporation). At that time it also began commercial banking, which eventually became its principal activity. After absorbing two other Swiss banks in 1897, the bank adopted the name Schweizerische Bankverein (Swiss Bank Corporation). The bank subsequently acquired or absorbed additional Swiss banks, and it opened branches and representative offices throughout Switzerland and in other countries. The bankâs headquarters were in Basel, which had its main office for European banking, while the main office for international banking was in ZĂŒrich.
The Union Bank of Switzerland was founded in 1912 in the merger of the Bank of Winterthur (established 1862) and the Toggenburger Bank (1863). It subsequently absorbed a number of other Swiss banks and became one of the largest commercial banks in Switzerland, with overseas representative offices and branches. Its headquarters were in ZĂŒrich.
By the 1990s the Union Bank of Switzerland and the Swiss Bank Corporation had become respectively the first and third largest banks in Switzerland, but increasing competition from American financial institutions prompted the two banks to merge in 1998. The resulting bank, known as UBS AG, became one of the largest banks in the world. The bankâs principal activities include personal and corporate banking, investment banking, wealth management, and asset management. Swiss Bank acquired S.G. Warburg, a financial services company, in 1995, and UBS purchased PaineWebber, a securities firm, in 2000. Both subsidiaries assumed the UBS name in 2003. In October 2008 the Swiss government took a 9 percent stake in and provided 6 billion Swiss francs ($5.36 billion) in capital to UBS, which had suffered tremendous financial losses from American subprime mortgage debt (see alsofinancial crisis of 2007â08). In 2014 UBS Group AG was founded as a holding company for UBS AG and its subsidiaries.
