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Dillon Read Capital Management: Five years on

On May 3, 2007, UBS announced it would close Dillon Read Capital Management, having reported sub-prime losses of Sfr150m, in the first indication of the writedowns that were to come

"The development of Dillon Read Capital Management, including its return on UBS proprietary capital, interest from third-party investors and the initiative's operational complexity, has not met our original expectations." So read UBS' first quarter earnings presentation, published five years ago today.

The bank had that day announced sub-prime debt-related losses for the first time in connection with the closure of the internal hedge fund, totalling around Sfr150m.

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