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July 24, 2008 11:01:15 PM CDT

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UBS Reports $712M Q3 Loss, $4.4B in Writedowns

Posted Oct 30, 07 8:36 AM CDT in Business 

(Newser) – The subprime mortgage mess claimed another casualty today: Zurich-based UBS reported its first quarterly loss in nearly five years, a $712 million hit that drove down share prices as much as 1.9%, reports Bloomberg. UBS reported $4.4 billion in losses and writedowns on mortgage securities. And more writedowns may be to come in the fourth quarter, the bank warned.

Investment losses, which surpassed the $3.7 billion estimated on Oct. 1, undercut record earnings at UBS's wealth management division, the world's biggest, Bloomberg notes. Merrill Lynch & Co., the only other Wall Street firm to report losses in the third quarter, last week reported $8.4 billion in writedowns.

Source Bloomberg

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The logo on the headquarters of the Union Bank of Switzerland (UBS) is seen in this Feb. 14, 2006 file photo. Losses linked to the collapsing market for U.S. subprime mortgages will force Swiss banker...   (Associated Press)
A building of the UBS bank in Zurich, Switzerland, Monday, Oct. 1, 2007.. (AP Photo/Keystone, Steffen Schmidt)   (Associated Press)
Arthur Cashin, director of floor operations for UBS, poses for a photo on the New York Stock Exchange trading floor, Tuesday morning, Oct. 16, 2007. In the 20 years since one of Wall Street's worst crashes,...   (Associated Press)
A man walks past the building of global financial services company UBS in central London, Monday Oct. 1, 2007. (AP Photo/Akira Suemori)   (Associated Press)
A logo of global financial services company UBS is seen in central London, Monday Oct. 1, 2007.(AP Photo/Akira Suemori)   (Associated Press)
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