The origin and destination of migrants Essay Example for Free

The origin and destination of migrants Essay Analyse the economic, environmental, social and demographic impacts of migration at both the origin and destination of migrants. Migration is a movement and refers to a permanent change of home. It can also be used with different scales to include temporary changes involving seasonal and daily movements both between countries and within a country. Migration will affect the distribution of people over a given area as well as the total population of a region and the population structure of a country or city. The changes caused by migration are also directly related to the causes of migration itself. For example, forced migration can be caused by religious or political reasons. When people leave because of this, there is likely to be less resistance in the area and so the views or actions, which forced citizens away, are likely to escalate. Other forced issues include overpopulation as found in China, famine suffered by Ethiopians in the Sudan, and environmental factors for example Chernobyl in the Ukraine. At the origin of migration, the effects will be mixed depending on the influences. On a national scale, migration can be both beneficial and disadvantageous. In the UK, internal migration is commonly due to several factors, including retirement where people who have served all their working days in urban surroundings and move to the quiet of rural areas, often on the coast, or moving to find a better quality of life or the relocation of business where people may be able to run their business from a remote location, or require movement to an area with improvement telecommunications or similar. As a result of this, agriculturally based work opportunities are declining as farms become even larger and more mechanised. Local housing becomes too expensive for local people and is bought by commuters. Demand for local services such as local shop and post office can cause them to close and people have to travel to urban areas making living in the country side more expensive. These effects work both ways however. The effect on those moving from rural to urban locations can be very beneficial. Businesses moving into urban areas are at an advantage because they will generally have access to better communication infrastructure and more valuable land and pool of staff to choose from. This still occurs despite financial incentives from the Government, which have been brought on by the worry of overcrowding of the major UK cities and the risk of the urban area becoming saturated, whereas the rural countryside can be much more scenically acceptable to the workforce. On an international scale, some countries view emigration as a direct cure for possible high unemployment rates. Whilst this may look good as a figure written down and a positive fact for the Government to use to show how they have cut unemployment, conversely if too many citizens emigrate who are also skilled workers then this could lead to labour shortages throughout the countrys profitable industry with which they would use both in country and export for extra global economic wealth. This is known as the brain-drain. If this were to happen, then the country would need to adopt a policy completely the opposite and import workers. Malaysia has suffered from this and has contracted Indonesians to live, some temporarily, in the country and work on construction projects and agricultural areas. These workers are filling the deficit that was left by Malaysian citizens leaving the country for Singapore and the Far East. In this situation, the push factors far outweigh the pull. The demography, social makeup of the source country will be affected too. Different ages and sexes are likely to show different characteristics and influence the area in different ways. For example, young adult in their reproductive years are more likely to move. The origin will then suffer a general decrease in birth rate because of less young frivolous males and females of childbearing age. This will inevitably lead to the average age of the population becoming higher increasing the death rate. An older population will also have an effect on their dependency on others. Older people will directly and indirectly put new pressures on transport, health and residential services, which will invariably change the social side of a settlement or country. Less industry and business will result although coastal and rural areas may benefit from tourism. The load on the remaining community would be high, and would be worsened if more of one gender migrated than the other forcing a lop-sided population pyramid. Sex selective migration can aid in disrupting family life and marriage patterns. This is demonstrated by the fact that of all households in the world, a woman heads one in three. The reasons for this are twofold. Firstly, the adult males may have died, maybe through war or natural disaster, with the wife outliving her husband. Secondly, the majority of women are without men because of migration. The men may have moved to other areas in search of better living standards for themselves or their family, better job prospects, or other economic advantages with which they can support the family elsewhere. An example of this occurring was the mass movement of young unmarried Irishmen last century. The average age of marriage for women rose and resulted in an ever-increasing proportion of those who never married, which will have affected the country severely. The population would have shrunk with a smaller male population and less couples producing families to continue replacement, and so birth rate falls. The environment will also be affected. If the area was heavily agricultural, then the effect of people moving away will be such that their will be less man-power in the area to tend to the land. This means that the land would be left unused and produce in the area will decline. In areas where subsistence farming is common, this would spell disaster for local residents whose food supply would diminish. If land is left unused then it loses its fertility therefore it is unlikely that the land would be able to be used to the same extent later on. This puts a rapid stop to any chance of sustainable development in the short-term future, although in the long-term the availability of fertiliser or nutrients to add to the land may help, but these come at a price. In many countries it is almost tradition that the young male or males of the family will provide and tend for all other members, including their sisters and elders. In communities where this is true, parents will often try to have as many children as they can because they know that their offspring will get jobs in their early teens and then be able to support their parents until old age. Traditionally also, parents have hoped for male offspring as opposed to female because males are more likely to get a job and earn more money to financially support his parents in the future. The problem that has been evident and one that is a growing concern is that young males are now migrating from their native lands or regions in search of better job prospects. Their ambitions are taking them away from their family unit, and when they reach their new urban destination they will either get a job and send some money back home if the infrastructure of the country supports; but if they cannot find employment then they still do not return to the rural areas because of embarrassment and failure to help their families. At the migrants destination, many of the same effects apply. The most obvious effect at the destination is that there is suddenly an increase in population. Because it is usually males of working age who move, there is now a huge pool of potentially cheap labour; and they tend to accept poorly paid and often menial jobs with little security. Whilst this is advantageous both to employers and to the migrants themselves who are provided with a source of income, migrants can be viewed as a burden upon their new homeland especially during times of recession. Many are joined by their families and thus make demands upon health, education, housing and welfare benefits. With an increase in population, there will be increase pressure on housing and accommodation. There are increasing numbers of migrants who are unable to find accommodation in the place to which they move; this forces them to live on the streets in shanties, refuge camps, or on a smaller scale. When joined by their wives and only at a much later stage by older relatives, by which time children may also have been born to them, this will drastically affect the demography of the area or country. It will create a huge imbalance of age and sex groups at the destination and also reverse patterns at their origin. Immigration however can play an important role in population growth. It can influence natural increase since most immigrants are of childbearing age, but sheer volume is also significant. For example, ten years of immigration to the USA accounted for over a half of the nations growth. There are currently approximately 1,500,000 forced migrants seeking refuge in the USA from countries such as El Salvador, Guatemala and Vietnam. In contrast to this, some cases migration has led to the reduction of native populations. Historically, when nations like Spain began to colonise the New World they took with them diseases such as influenza, measles and smallpox and as a result the indigenous populations dropped by two thirds. Hartman, of the London School of Economics stated that, Some argue that population growth is the greatest single limit to economic growth and the continued survival of the earths ecological systems. In other words, scarcity of resources is made worse by the increasing demand from a growing population for resources such as water, fuel, and a clean environment. In reality, this resource scarcity can lead to enhanced conflict and the breakdown on cooperative action. Such stresses can have a negative effect of health and changing consumption patterns and can also lead to wars and violent conflict leading to increased migration and the creation of so called environmental refugees. The social impact of migrants is probably the most contentious and important. International migration can lead to racial tension. Despite the enrichment of the country brought about by immigrants (artistic, theatrical, sporting, commercial, administrative and industrial, for example), resentment and even anger can be directed at such groups who see themselves as long-standing citizens, resulting in racism. It is often directed at easily identifiable groups and this behaviour is likely to be brought about by the unfortunate desire for individuals to protect their territory. At best, the situation fades out as the groups are accepted into society. At worst, the racism holds that the immigrants, no matter how long-standing they may be, are a threat to the well being of the nation, and are encouraged by one means or another to leave. If the group is not socially resilient, then there should, theoretically, be no problem with racism on any level.

Transformational School Leadership Essay -- transformational leaders

School leadership in recent times has involved more and more time and consideration as schools are being made held responsible for significant changes in the outcomes of students learning (Leithwood & Riehl, 2005, p. 12). With pressures coming from all levels of government, Principals are not the only ones being held accountable to the outcomes of students (Leithwood & Riehl, 2003). Davis (2012) identifies strongly with this as middle executive roles and teachers within a school are being required to work collaboratively to achieve objectives and to transform cultural change into reality. This paper will discuss the traditional social construction of leadership and how the use of transformational leadership has planned, developed and established an alternative learning within a rural New South Wales high school. This paper will also discuss and analyse effectiveness of the leadership that has taken place This programme was designed and is being run to address poor attendance and retention of targeted students from 14 to 17. This programme ran in partnership with local employment providers, Aboriginal Training Groups as well as the local tertiary training centre. School X is an isolated high school within a town with a populace of 3000 people (Australian Bureau of Statistics, 2011). The student population currently resides at 210 with 50% of the students recognising themselves as Indigenous (McDonald & Levinston, 2011). A large percentage of the town’s vocation consists of unskilled labour, with a best part of these also being small business owners (Australian Bureau of Statistics, 2011). These include earthmoving companies, primary industries service companies and only a small percentage of the town has a post-sec... ...about leadership? Leadership for the disillusioned: Moving beyond myths and heroes to leading that liberates (pp. 17-34). Crows Nest: Allen & Unwin. Stogdill, R. M. (1948). Personal factors associated with leadership: A survey of the literature. The Journal of Psychology, 25(1), 35-71. Tobin, T., & Sprague, J. (1999). Alternative Education Programs for At-Risk Youth: Issues, Best Practice, and Recommendations. Oregon school study council bulletin, 42, 20. Watkins, P. (1986). A Critical Review of Leadership Concepts and Research: The Implications for Educational Administration: Publication Sales, Deakin University Press, Deakin University, Victoria 3217, Australia ($12.50 Australian; quantity discounts). Williams, B. P. (2011). An analysis of participation in servant leadership as self reported by elementary school principals in southwest Georgia.

Wider Professional Reading

Wider Professional Practice [Part 4] I believe that education should be available for all. I feel particularly strongly that those from disadvantaged backgrounds should have the opportunity to experience learning and thus have the chance to make their own life choices. To work with a learner who realises his / her own worth is, to me, a greater experience than handing them a Maths or English certificate, although this is very rewarding, as well. So, perhaps, the first value that I would put forward would be to support the individual to ‘self’ develop – personally and educationally, giving opportunity for self-awareness and actualisation.This necessitates time, flexibility, encouragement and the ability to motivate [not always easy]; it also needs trust and mutual respect [often a failing cited by learners about teaching staff], which develop as the relationship progresses. Following on from this it is important that all have equal opportunity to succeed. Inclusion and establishing individual needs is important, as is being a good role model and exerting professional behaviour, thus, embedding standards which will support the personal growth of the learner.For some this positive role model will have been ‘by-passed’, but it is also as mentor, coach and counsellor where support should be available, if required. These values can help improve quality of life, develop potential and offer purpose to learners but will also, hopefully, make them productive citizens. Personal development in the student is paralleled in the educator – autonomy an important vision for learner and tutor alike To learn, ourselves, from experiences, reflection, evaluation and self-investigation is the basis for continuing professional development and enhances us as professionals, leading to a better teacher.It is a teacher’s responsibility to keep up to date with educational change and subject specialism, as well as technology advances and basic skills [English and Maths]. This can be attained through training, keeping up to date with news / current affairs and action research on points of interest. Although this is an individual’s responsibility, some institutions collaborate to improve systems – at my organization we have resources weeks, where we work together to improve and increase materials, and at tutor meetings issues are discussed and development undertaken [e. g. tandardization of portfolios]. So, good practice will be reliant on others, be it peer or formal observation, appraisal, sharing of resources, informal feedback or support from colleagues, and offers experiences to improve our skills and abilities. As a more seasoned practitioner it is also important to support others, be they new to teaching or purely in need of assistance, ideas or guidance, encouraging them and offering advice if needed – in a more formal setting as guide or mentor. This disseminates knowledge and if communicated effectively creates further good practice.Communication is another key. Clarity, empathy, listening skills and confidence all play their part in being a successful teacher. This skill is important when teaching learners but is also necessary when liaising with other staff and team members. To build rapport, a main feature of the communication process, enables better learning and will lead to collaboration, itself a highly sought after value within education. As mentioned in my company there is a close relationship between tutors and each will look to team members for support [be it resources, paperwork issues or problems with learners].Standard expectations, and therefore values, would be the ‘nuts and bolts’ of the job responsibility, and would include: planning and preparing for lessons, incorporating areas previously discussed [individual needs, challenges, different styles, methods and tools etc. ]; and learner feedback and assessment – important for learners to be able to chart their progress. It is important to give learners stretching targets, or there is risk of demotivation, but too difficult may likewise be off-putting – being able to judge the right level is a skill that comes with experience.The values of a teacher should mirror the IfL’s code of practice [2008], a document that lays out expected codes of conduct and professionalism. The basic principles are: integrity, respect, care, practice, disclosure and responsibility, and are in place for the benefit of ‘learners, employers, the profession and the wider community. ’ Although perhaps somewhat bombastic in approach and full of self-importance the core elements of the IfL’s mandate are what we, as ‘influencers of the future’, should be striving for – instilling morally sound values and judgements into our learners.

Financial Analysis Of UBS AG Finance Essay - Free Essay Example

Sample details Pages: 11 Words: 3337 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? UBS AG is a diversified global financial services company, having its main headquarters at Basel and Zurich, Switzerland. In June 1998, Union Bank of Switzerland and Swiss Bank Corporation (SBC) completed the merger announced six months previously. Just two years later, UBS acquired the US brokerage firm Paine Webber, greatly increasing the size and scope of its business. Then the new firm set the seal on these achievements by proclaiming a single brand. In this light, UBS is both a new institution and new brand. In the picturesque Swiss region of Valposchiavo, for example, one UBS branch traces its origins as far back as 1747. The core components of todays UBS date back to the second half of the nineteenth century. At the same time, its history extends many generations into the past, particularly in Switzerland, the US and the UK. UBS is ranked second worlds largest asset manager of private wealth, and is the second-largest bank in Europe, in both market capitalisation and profitability. With its major presence in United States UBS has its headquarters located in New York City; Weehawken, Private Wealth Management in New Jersey; and Stamford, Connecticut for Capital markets, UBSs has its retail offices throughout the U.S., and has its presence in more than 50 countries (www.ubs.com). Don’t waste time! Our writers will create an original "Financial Analysis Of UBS AG Finance Essay" essay for you Create order UBS was force to turn to the Government of Singapore for fresh funding after incurring a huge loss in 2007. After funding, Government of Singapore Investment Corporation became the largest shareholder of UBS in 2007. UBS managers pledged to return bonuses after a dramatic loss in November 2008. New financial aid was expected from Swiss government after the UBS shareholders voted to restore the shaken trust in UBS (www.ubs.com). Credit Suisse found a new cross-town rival in the form of UBS which has evolved on a similar path. Both of them originated from Switzerland indulging in commercial and retail banking who purchased major investment banks in United States and both are being investigated by U.S. authorities currently for helping 17,000 American citizens to avoid taxes. Based on the order by the Swiss Financial Markets Supervisory Authority (FINMA), UBS on 18th February 2009, immediately has agreed to provide the identities of and account information of about 250 American clients to United States and also agreed to pay US$ 780 million in the form of compensation and fines (www.ubs.com). Company Finance function: https://chart.finance.yahoo.com/c/1y/u/ubs Source: https://chart.finance.yahoo.com/c/1y/u/ubs Modern companies need to raise finance from the capital market in order to invest in the real and intangible assets they need to earn profits. Their first priority is to ensure that they can source finance for both their short run and their long run needs in the most economical way possible. Corporate investment is by its nature risky and often capital intensive (Ryan, 2007). In order to justify the use of other peoples money a firm needs to ensure that the investment decisions it makes, taking into account its cost of capital, lead to an overall increase in the value of the firm and hence its investors wealth. Alongside the problem of sourcing finance at the cheapest cost, the firm has to make sure that all the investment decisions it undertakes are value adding. If they are not the firm will not be able to justify its existence for very long and will find itself out of business (Ryan, 2007). The ability to trade the financial claims of business ventures has been known about and practised for centuries. In the modern era the standardization of financial claims into homogenous trading units has transformed the way markets operate. Until the 1930s companies, for example, borrowed money from banks but following the Wall Street Crash in the United States there was a sudden loss of confidence in the banking sector. As a result, companies started to practise what governments had been doing for some time and sidestepped the banks going directly to lenders and offering them securitized debt in the form of bonds (Ryan, 2007). Although modern financial intermediaries are marvel of efficiency, the role of traditional intermediaries such as banks as providers of debt capital to corporations has declined for decades. Instead, nonfinancial corporations have increasingly turned to capital markets for external financing, principally because the rapidly declining cost of information processing makes it much easier for large number of investors to obtain and evaluate financial data for thousands of potential corporate borrowers and issuers of common and preferred stock equity (Megginson and Smart, 2006). The Five Basic Corporate Finance functions: Although corporate finance is defined generally as the activities involved in managing cash flows (money) in a business environment, a more complete definition would emphasize that the practice of corporate finance involves five basic functions: Raising capital to support companies operations and investment programs (the external financing function); Selecting the best projects in which to invest firms resources, based on each projects perceived risk and expected return (the capital budgeting function); Managing firms internal cash flows, its working capital, and its mix of debt and equity financing, both to maximize the value of firms debt and equity claims and to ensure that companies can pay off its obligations when due (the financial management function); Developing company-wide ownership and corporate governance structures that force managers to behave ethically and make decisions that benefit shareholders (the corporate governance function); and Managing firms exposures to all types of risk, both insurable and uninsurable, to maintain and optimal risk-return trade-off and therefore maximize shareholder value (the risk-management function). (Source: Megginson and Smart, 2006) UBS External financing: When corporations are young and small, they usually must raise equity capital privately, either from friends and family, or from professional investors such as venture capitalists. These professionals specialize in making high-risk/high-return investments in rapidly growing entrepreneurial businesses. Once firms reach a certain size, they may decide to go public by conducting an initial public offering (IPO) of stock-selling shares to outside investors and listing the shares for trading on a stock exchange. After IPOs, companies have the option of raising cash by selling additional stock in the future (Megginson and Smart, 2006). Capital Budgeting The capital budgeting function represents firms financial managers single most important activity, for two reasons. First, managers evaluate very large investments in the capital budgeting process. Second, companies can prosper in a competitive economy only be seeking out the most promising new products, processes, and services to deliver to customers. Companies such as Intel, General Electric, Shell, Samsung, and Toyota regularly make huge capital outlays. The capital budgeting process breaks down into three steps: Identifying potential investments; Analysing the set of investment opportunities and identifying those that create shareholder value; and Implementing and monitoring the investments (Source: Megginson and Smart, 2006) Risk Management Historically, risk management has identified the unpredictable act of nature risks (fire, flood, collision, and other property damage) to which firms was exposed and has used insurance products or self-insurance to manage those exposures. Todays risk-management function identifies, measures, and manages many more types of risk exposures, including predictable business risks. These exposures include losses that could result from adverse interest rate movements, commodity price changes, and currency value fluctuations. The techniques for managing such risks are among the most sophisticated of all corporate finance practices. The risk-management task attempts to quantify the sources and magnitudes of firms risk exposure and to decide whether to simply accept these risks or to manage them (Megginson and Smart, 2006). Corporate Governance Recent corporate scandals-such as financial collapses at Enron, Arthur Andersen, WorldCom, and Parmalat-clearly show that establishing good corporate governance systems is paramount. Governance systems determine who benefits most from company activities; then they establish procedures to maximize firm value and to ensure that employees act ethically and responsibly. Good management does not develop in a vacuum. It results from corporate governance systems that hires and promotes qualified, honest people, and that motivate employees to achieve company goals through salary and other incentives (Megginson and Smart, 2006). Developing corporate governance systems present quite a challenge in practice because conflicts inevitably arise among stockholders, managers, and other stakeholders interests. But rarely is it in the interest of any individual stockholder to spend the time and money needed to ensure that managers act appropriately. If individual stockholders conducted this type of oversight, they would personally bear all the costs of monitoring management, but would share the benefits with all other shareholders. This is a classic example of the collective action problem that arises in most relationship between stockholders and managers (Megginson and Smart, 2006). Bankruptcy and Corporate Financing Patterns The more debt a firm uses in its capital structure, the less likely the firm will be able to meet its debt service obligations, and the more likely default will occur (Benning and Sarig, p.347). It is this default likelihood that introduces bankruptcy costs into capital structure. As argued by Van Horne (p.268), the presence of bankruptcy costs is an important source of imperfection in the markets for corporate funds. Under imperfect conditions, there are the administrative costs of bankruptcy, and assets may have to be liquidated at less than their economic values (Bekter, p. 56). It is also this tendency that Myers (p.218) describes as the direct cost of bankruptcy. The implication of the presence of bankruptcy cost in financial leverage is manifested more by the fact that debt-financing generates risks. Not only that, but it has been argued that for instance that every financing decision comes with some risk implications on the value of the firm (Glen and Pinto, 1994). In U.S history the largest bankruptcy was finally coming to an end. On April 20, 2004, MCI, Inc. Emerged with an announcement that it had begun distributing securities and cash to its creditors according to a court-approved reorganization plan. MCIs chief executive officer, Michael Capellas, heralded a new beginning for his company, which had filed for bankruptcy court protection twenty-one months earlier-when the company was called WorldCom-after disclosing and $11 billion accounting fraud. At the time of its Chapter 11 filing, WorldCom had assets totalling nearly $104 billion and debts of $32 billion (Megginson and Smart, 2006). WorldCom shocked the business world when the company announced in June 2002 that it had fraudulently overstated $3.9 billion of expenses as capital expenditures, which had allowed it to book higher profits during the telecom boom years of 1998-2001. WorldCom chief financial officer Scott Sullivan was fired the day the accounting fraud was disclosed, and his exit followed that of founder and long-time CEO, BernineEbbers, who had been forced out in April 2002. Over the next two years, more than $7 billion in additional accounting errors and frauds were uncovered,, bringing the total misstatements to $11 billion, and in a March 2004 restatement of its 2001 and 2002 financial results, the company wrote off over $74 billion in previously booked profits and goodwill (Megginson and Smart, 2006). Corporate Control Transactions Changes in corporate control occur through several mechanisms, most notably via acquisitions. An acquisition is the purchase of additional resources by a business enterprise. These resources may come from the purchase of new assets, the purchase of some of the assets of another company, or the purchase of another whole business entity, which is known as a merger. Merger is itself a general term applied to a transaction in which two or more business organizations combine into a single entity. Oftentimes, however, the term merger s reserved for a transaction in which one corporation takes over another upon the approval of both companies boards of directors and shareholders after a friendly and mutually agreeable set of terms and conditions and a price are negotiated (Megginson and Smart, 2006). Statuary Merger A statutory merger is a form of target integration in which the acquirer can absorb the targets resources directly with no remaining trace of the target as a separate entity. Many intrastate bank mergers are of this form. Subsidiary Merger Conversely, an acquirer may wish to maintain the identity of the target as either a separate subsidiary or division. A subsidiary merger is often the integration vehicle when there is brand value in the name of the target, such as the case of PepsiCos merger with Pizza Hut in 1997. Sometimes, separate tracking or target shares are issued in the subsidiarys name. Sometimes, these shares are issued as new common shares in exchange for the targets common shares, as occurred when General Motors issued new Class E and Class H shares to acquire, respectively, Electronic Data Systems and Hughes Electronics during the 1980s. Alternatively, a new class of preferred stock may be issued by the bidding firm to replace the common shares of the target as well (Megginson and Smart, 2006). Consolidation Consolidation is another integrative form used to effect a merger of two publicly traded companies. Under this form, both the acquirer and target disappear as separate corporations and combine to form an entirely new corporation with new common stock (Megginson and Smart, 2006). Dealing with the Crisis The merger of the Union Bank of Switzerland and the Swiss Bank Corporation in June 1998 resulted in UBS evolution. The new company was named originally as Union Bank of Switzerland, but officials chose to call it as UBS as the name was clashing with United Bank Switzerland a subsidiary part of the United Bank Limited, Switzerland. United Bank of Switzerland is no longer known for its name as it made its brand name UBS like 3M. The carried over logo from SBC, which stands for confidence, security and discretion has remained with UBS. With its acquisitions of Dillon Read in New York and S. G. Warburg in London, SBC had investment banking business all over the world before the merger. Due to the Long-Term Capital Management crisis, in October 1998, the first chairman of the merged bank resigned which affected the Union Bank of Switzerland. After the acquisition of Paine Webber Group Inc. by UBS in 2000, it became the largest private clients wealth management company in the world. A CHF 3.265 trillion assets was invested in wealth management businesses, including the U.S. As the company began to operate as one large firm, all the business group of UBS were rebranded under the UNBS name on the 9th June 2003. All major companies bought by Union Bank of Switzerland like UBS Paine Webber, UBSWarburg, UBS Asset Management and others were just called UBS. With the retirement of the Paine Webber brand UBS took a US$1 billion write-down for the loss of good will associated with as a result of the rebranding. www.ubs.com In a report released on 01st April 2008, 15 billion Swiss francs (US$15.1 billion) in a new capital was seeked by Swiss bank UBS AG as it expected to post net losses of 12 billion Swiss francs (US$12.1 billion) for the first quarter of 2008. Around 19 billion dollars on U.S. real estate and related credit positions were expected to write-down as UBS was hit by U.S. Subprime mortgage crisis and losses. Fitch Ratings and Standard Poors, and Moody are cut down the long term credit rating of UBS in April 2008 to AA and Aa1 respectively. A new capital of CHF 6 billion through mandatory convertible notes was announced by UBS which they had on the 16th October 2008, and was place with Swiss Confederation. Transfer agreement of approximately USD 60 billion currently illiquid securities and various assets from UBS to a separate fund entity were made between the Swiss National Bank (SNB) and UBS (www.ubs.com). The third quarter Group net profit was announced by UBS on 4th November which was in line with their 16th October pre announcement, CHF 296 million standing with net profit attributable to UBS shareholders. A further CHF 4.8 billion of write-downs and losses on risk positions affected that quarter in gain on tax credit of over CHF 900 million and own credit of CHF 2.2 million. In an announcement made on the 12th November 2008, UBS said that from 2009 there will be no more than one-third of any cash bonus paid out in year it is earned with the rest held in reserve. Top executives will have to hold 75% of any vested shares; incentives would also vest after three years on shares with share bonus accounts subject to malus charges. US$6 billion of equity was put into the new bad bank entity by UBS in November 2008; a benefit option was kept only if the value of its assets were to recover. UBS structure guaranteed clarity for UBS investors by making an outright sale, which was indicated as a neat package by the New York Times (www.ubs.com). The head of the Swiss National Bank (SNB) and Chairman Jean-Pierre Roth on Friday the 30th January 2009was quoted on Reuters as saying that the two best capitalised banks in the world are UBS and Credit Suisse. In an announcement made on the 09th February 2009 by UBS, said that it lost nearly 20 billion Swiss francs (US$17.2 billion) in 2008, which is the single-year biggest loss in the history of Switzerland. The commitment to each of the UBS business divisions and strategy were confirmed by UBS Board of Directors and the Group Executive Board on the 10th February 2009. Investigations relating to UBS U.S. cross-border business are getting resolved by entering into a deferred prosecution agreement with the US Department of Justice and a Consent Order with the US Securities and Exchange Commission. US$380 million represents disgorgement of profits from its cross-border business out of US$780 million which UBS agreed to pay. And the remaining represents the tax amount of United States which UBS failed to withhold to the accounts. The interest, penalties and restitution for unpaid taxes are included in the figures. UBS also entered into an agreement with the Securities and Exchange Commission as part of the deal in which it agreed to the charges of having acted as an unregistered broker-dealer and investment adviser for Americans (www.ubs.com). Initiative taken CHF 20.9 billion (US$ 18 billion) loss was posted by UBS AG on the 11th march 2009 which was stated in their revised FY 2008 report. It was said that UBS was extremely cautious about the outlook of 2009. UBS announced in its Annual General Meeting held on 15th April 2009, it has plans of cutting 8,700 jobs in its return to profitability.UBS had to make about US$50 billion in write-downs and announce of 11,000 job cuts since 2007 due to the global financial crisis. UBS agreed to sell its Brazilian financial service business, UBS Pactual, to BTG Investments for approximately USD 2.5 billion in a statement made on the April 21st 2009.UBS was aiming to reduce its risk profile and to become more profitable by the sale of the Brazilian business. U.S. federal grand jury charges were made on private banker Raoul Weil for which UBS formally cut all its ties on the 1st May 2009. Raoul had been suspended in November 2008 after he was indicated in correlation to the tax evasion affair. A first q uarter net loss of two billion Swiss francs (USD1.75 billion) was confirmed by UBS on May 20th 2009 which was less than initially expected. UBS restated its 2008 annual report on the May 20th 2009. A further reduction in the net profit was announced by the bank of CHF 450 million, and CHF 269 million in reduction of equity and equity attributable to UBS shareholders (www.ubs.com). UBS strengthened its capital base by placing 293.3 million shares from existing authorized capital by taking the advantage of current market conditions. A small number of large institutional investors were placed with the shares. In the view of the regulators it was consistent that this capital raising aims at strengthening confidence in UBS and the Swiss financial centre which is claimed by UBS. The second quarter loss of CHF 1.4 billion (US$1.32 billion) was reported on the 4th August 2009. The Swiss government made a statement of selling its CHF 6 billion stake in UBS on the 20th August 2009, making significant profit; the mandatory convertible notes of 332.2 million which it had purchased in 2008 to help UBS clear its balance sheets of toxic assets (www.ubs.com).