UBS will take a Sfr4bn (€2.6bn) charge in its fourth quarter results for the transfer of $60bn (€44.5bn) in troubled assets into a new special purpose vehicle, which will be controlled by the Swiss National Bank, as rival Swiss bank Credit Suisse declined the offer of a similar government sponsored transaction.

UBS, which this morning announced a two-part plan to raise its capital ratios and reduce its balance sheet, will raise Sfr6bn of new capital through mandatory convertible notes.