UBS writes down $10 billion quarterly loss

Source: Exec Digital UK

Date :10/12/2007 11:24:31

The world’s largest wealth management group, UBS announced today another $10 billion (£4.93bn) of write downs following related issues to US subprime problems.

In October the bank reported losses of $3.7 billion, relating to the credit squeeze. The October deficit was the first UBS loss in the last nine years in the third quarter.

The US credit crisis continues to worsen and the bank was forced to update their loss assumptions to the levels implied by the current distressed market for mortgage securities.

UBS are expecting to report a loss for the entire year of 2007, despite the news that it had received a 11 billion Swiss francs ($9.7 billion US) new capital injection from the Government of Singapore Investment Corporation.

The announcement comes one day before an investor conference in London, amongst growing fears that the mortgage crisis could have even more devastating effects on the financial markets.

December 10, 2007