As a long term UBS shareholder, Ethos is expecting detailed information regarding the mechanisms that led to the write-offs and to the massive losses linked to the US subprime mortgage crisis. In order to clarify the circumstances that drove the Bank to this situation, Ethos has asked that a request for information and a request for a special audit be added to the agenda of the extraordinary general meeting of shareholders scheduled to take place in mid-February 2008.
For Ethos, the request for information and the request for a special audit should bring to light potential risk management and risk control dysfunctions. Ethos has decided to take this step for two reasons: to ascertain compliance with the law and to help enhance future procedures.
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Independence of risk control from risk management
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Limit to the volume of high-risk transactions
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Existence of a special internal audit in 2006 or 2007
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Risk control relating to the reintegration of Dillon Reed Capital Management
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Remuneration system for risk control staff
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2006 executive remuneration
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Equal treatment of shareholders and priority rights to subscribe to convertible bonds
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Implementation of the Swiss Federal Banking Commission Circular of 27 September 2006
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Possible restatement of the 2006 accounts
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Independence and adequacy of the risk management system since 2006