Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 12, 2008 8:07:35 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Subprime Woes Cost UBS Record $4B Loss

Posted Jan 30, 08 5:59 AM CST in Business 

(Newser) – Hit hard by the subprime mortgage crisis, UBS AG announced it will write down an additional $4 billion in bad investments and post a $4.03 billion loss for 2007, a record for the company and significantly more than the Swiss banking giant predicted in December, reports the Wall Street Journal. Analysts warn that more writedowns could be coming.

The company also said it would report a net loss of $11.4 billion in the fourth quarter, twice that expected by analysts. UBS, Europe’s largest bank and the world’s largest wealth manager, has written down $14 billion so far, and still held some $29 billion in subprime US mortgage debt in December. Final financial reports will be released February 14.

Sources Wall Street Journal, Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Fannie Misses Estimates, Slashes Dividend

    Aug 8, 08 8:37 AM CDT
    Fannie Misses Estimates, Slashes Dividend Fannie Mae reported its fourth straight losing quarter today, Bloomberg reports, coming in $2.3 billion in the red and slashing its dividend. The $2.51-per-share loss far exceeded the 72-cent average predicted by analysts, much as Freddie Mac surprised investors two days ago. “Neither of these companies have properly provisioned for what we're heading into,” said one analyst. “This thing is going to get worse and last longer and deeper than they originally thought.” More »

  • Freddie Has 4th-Straight Loss as 2nd Quarter Charges Rise

    Aug 6, 08 7:15 AM CDT
    Freddie Has 4th-Straight Loss as 2nd Quarter Charges Rise Rising delinquencies and a still-skidding home market combined to make Freddie Mac’s second quarter losses three times worse than analysts predicted, reports Bloomberg. The government-backed mortgage enterprise lost $821 million, or $1.63, in the quarter, prompting it to also announce a third quarter slash in dividends from 25 cents to 5 cents a share.
    More »

  • Fed to Crack Down on Subprime Loans

    Jul 8, 08 8:26 AM CDT
    Fed to Crack Down on Subprime Loans The Federal Reserve will issue new rules next week restricting subprime lending and other exotic loans aimed at borrowers with weak credit, Ben Bernanke said today. He said the Fed is also considering extending the overnight low-cost loan program, which helps big banks in need of quick cash, a sign that the Fed believes the financial crisis will continue into 2009. More »

  • Embattled AIG CEO Steps Down

    Jun 15, 08 3:43 PM CDT
    Embattled AIG CEO Steps Down Martin Sullivan has stepped down as AIG's CEO, and the company's board named chairman Maurice Willumstad his successor, insiders tell the Wall Street Journal. The insurance giant's stock has plummeted more than 50% since October due to subprime writedowns, and Sullivan is still embroiled in legal battles with his former boss. The new chief may start with a clean slate, but the state of American real estate remains daunting. More »

  • As Mortgages Melt Down, Owners Burn Up

    Apr 21, 08 12:11 PM CDT
    As Mortgages Melt Down, Owners Burn Up US homeowners are literally burning down their homes instead of paying their subprime mortgages. Last year saw a dramatic nationwide jump in apparently debt-motivated arson, the Los Angeles Times reports. “I'm busier now than a one-armed paper hanger,” said one investigator. “What is happening is terrifically economically driven.” So far, the numbers are small, but they have insurers on edge. More »

Marcel Rohner, CEO of Swiss banking giant UBS, speaks during the ISC symposium in St. Gallen, Switzerland in this May 13, 2004 file photo.   (Associated Press)
The logo on the headquarters of the Union Bank of Switzerland (UBS) in Zurich, Switzerland, is seen in this Feb. 14, 2006 file photo. Swiss Bank UBS AG said Wednesday, Jan. 30, 2008 it expects a record...   (Associated Press)
The chairman of the board of directors, Marcel Ospel, speaks during the annual general meeting of Swiss bank UBS, in this April 21, 2005 file picture taken in Kloten, Switzerland.   (Associated Press)
The UBS logo is shown on a branch office in this Feb.14, 2006 file photo in Zurich, Switzerland.   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 2)

Tags

subprime mortgages  • subprime crisis  • corporate earnings  • UBS


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »