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Among the hardest hit was UBS AG,a Swiss bank, forced to take a writedown of
950 million Swiss francs ($684-million) on its 15-per-cent stake in the
firm. UBS' third-quarter loss will be as much as a billion Swiss francs.
Credit Suisse Group said its 1998 revenue would be cut by $55-million as a
result of its participation in the bailout.
Dresdner Bank AG,which said losses this year stemming from its investment
would total 240 million German marks ($144-million), did not join in the rescue.
But the elite of Wall Street did, including Merrill Lynch & Co. Inc., Chase
Manhattan Corp., Bankers Trust Corp., Goldman Sachs Group Inc., J.P. Morgan
& Co. Inc., Travelers Group Inc., Morgan Stanley Dean Witter & Co. and
Lehman Brothers Holdings Inc.
All threw in $300-million each, apart from Lehman, which anted up $100-million.
Several individuals familiar with the situation said Lehman, Merrill and
other Wall Street houses would have been in difficulty had the hedge fund
been forced to liquidate its portfolio.
Representatives from UBS, another of the $300-million contributors to the
bailout, and five of the Wall Street investment banks will form a committee
to oversee the fund's operations.
Michael Paauwe
mpaauwe@xxxxxxxxxx
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