UBS is to accelerate plans to create a separate unit to manage select illiquid US real estate related holdings in an effort to stem the impact of distressed market conditions on its core businesses and restore some semblance of confidence to the Swiss bank.

Financial News reported earlier this month that Analysts had urged UBS to hive off its bad and doubtful debts from the rest of its wealth management and investment banking operations in a bid to restore confidence in the Swiss bank.