The chairman and three senior executives of UBS, the world's largest bank, resigned Friday after taking the blame for a $696 million charge related to exposure to Long-Term Capital Management LP, the failed U.S. hedge fund.

The resignations at the Swiss bank were the first among more than two dozen banks worldwide that had extended credit or taken investment positions in Long-Term Capital. The hedge fund amassed speculative bond and equity holdings of more than $100 billion before it failed last month and was taken over by a consortium of 14 banks and brokerages.

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