Business Case Studies, Spin-offs Case Study, DaimlerChrysler,Spin-off

print page
Tell A Friend

Case Categories

Spin-offs Case Study

Case Title:

UBS AG to Split: The Right Solution to Overcome Sub-prime Crisis?

Publication Year : 2010

Authors: J Thadamalla, M Bhatt, S Gollapalli

Industry: Banking, Insurance and Financial Services


Case Code: SPN0011IRC

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study


UBS AG, one of the leading financial services firms in Europe providing investment banking, wealth management and asset management services across the globe, had to writedown $43 billion of its assets for the losses suffered by its investment banking division due to the sub-prime mortgage crisis in the US since July 2007. This large writedown had hit its image leading to huge withdrawals from its wealth management and asset management divisions by the high net worth individuals in the second and the third quarters of 2008, which made matters worse for UBS. Amidst this scenario, UBS decided to split its businesses into separate entities. The case would aid discussion on whether the UBS' troubles during the sub-prime crisis were due to weak risk management or poor leadership. It also debates whether splitting the businesses was the right solution for UBS to overcome its problems.

Pedagogical Objectives:

  • To dynamics of the mortgage loan market
  • To importance of risk management.
  • To strategies to counter financial crisis.

Keywords :  UBS AG, Sub-prime crisis, Financial crisis 2008, US mortgage market, Risk management, Securitisation, Investment banking, Dillon Read Capital Management (DRCM), Sub-prime mortgage, Writedown, Leadership failure

Contents : 
US Subprime Crisis: Impact on UBS
Mortgage Loan Process
Securitisation Process in Mortgage Market
The Mortgage Lending Model Traditional vs. Sub-prime
Swiss Banking Group UBS: Strategic Options
Organisational Structure of UBS AG

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • Dr. Bala V BalachandranDr. Bala V Balachandran

    Dr. Bala V Balachandran, Founder and Honorary Dean of Great Lakes Inistitute of Management
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • Roland T RustRoland T Rust

    Roland T Rust, is Distinguished University Professor and David Bruce Smith Chair in Marketing at the Robert H Smith School of Business at the University of Maryland.
    Speaks on Co-Creation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA, E-mail:

©2020 - 25 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap