The StabFund: a look at the inner workings of a 'bad bank'

Two years have passed since the Swiss National Bank (SNB) stabilisation fund (StabFund), the first "bad bank" in the history of the SNB, was established in order to acquire illiquid assets from UBS. This article describes how the SNB managed this bad bank project, highlighting in particular the legal and operational set-up of the fund and its approach to asset management. Lehman's fall threatens UBSThe StabFund was established in autumn 2008 after the failure of Lehman Brothers threatened the