UBS Writes Down $10B; Sells $11.5B Stake

Subprime exposure will cost bank Q4 profit, result in loss for the year

By Jim O'Neill, Newser User

Posted Dec 10, 2007 7:32 AM CST

(Newser) – Investors from Singapore and the Mideast will breathe $11.5 billion in new capital into UBS as the Swiss banking giant announces that it will write down an additional $10 billion in subprime holdings, Bloomberg reports. The bank said the subprime losses, the biggest by a European bank, will wipe out expected fourth quarter profits, resulting in a loss for the year.

UBS said the government of Singapore's investment arm will buy a 9% stake in the bank for 11 billion francs. An unidentified Middle Eastern investor, rumored to be the government of Abu Dhabi, which last month poured $7.5 billion into Citigroup, will add 2 billion more. UBS shares rose 1.5 francs to 58.7 francs, after initially dropping as much as 3.4%.

The logo on the headquarters of the Union Bank of Switzerland (UBS) is seen in this Feb. 14, 2006 file photo. (Associated Press)

A logo of global financial services company UBS is seen in central London, Monday Oct. 1, 2007. (Associated Press)

A building of the UBS bank in Zurich, Switzerland, Monday, Oct. 1, 2007. Swiss bank UBS AG. (Associated Press)

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UBS Writes Down $10B; Sells $11.5B Stake

Subprime exposure will cost bank Q4 profit, result in loss for the year

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For Hurting US Companies, World Supplies Band-Aid

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Abu Dhabi, Shanghai also among locations planning impressive amusements

Sovereign Funds Agree on Conduct

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UBS Posts Record $11.2B Quarterly Loss

Swiss bank also posts its first annual loss on $13.7B subprime writedowns

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UBS Writes Down $10B; Sells $11.5B Stake

Subprime exposure will cost bank Q4 profit, result in loss for the year

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OTHER STORIES ON OUR RADAR

subprime mortgages • UBS • Singapore • Abu Dhabi

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

For Hurting US Companies, World Supplies Band-Aid

In economic sea change, 'we need the money,' one US Rep. says

Feds Sue Big Banks Over Mortgages

US accuses them of dodging due diligence as crisis fallout spreads

Dubai Is the New Mecca for Theme Parks

Abu Dhabi, Shanghai also among locations planning impressive amusements

Sovereign Funds Agree on Conduct

Treasury's Paulson works deal on keeping investment from crossing political bounds

UBS Posts Record $11.2B Quarterly Loss

Swiss bank also posts its first annual loss on $13.7B subprime writedowns

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Newser By Users

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