Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Subprime Woes Cost UBS Record $4B Loss

The Swiss bank adds to its write downs; more bad news could be coming

By Jim O'Neill,  Newser User

Posted Jan 30, 2008 5:59 AM CST
Email

(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.

Marcel Rohner, CEO of Swiss banking giant UBS, speaks during the ISC symposium in St. Gallen, Switzerland in this May 13, 2004 file photo.
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 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.
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.
The UBS logo is shown on a branch office in this Feb.14, 2006 file photo in Zurich, Switzerland.   (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 loss of around 12.5 billion Swiss francs (US$11.45 billion; 7.75...
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)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

UBS planning a change in investment business
Associated Press

UBS says real estate stock will get help from Fed rate cut
CNN

 
subprime mortgages • UBS • corporate earnings • subprime crisis

More Newser Stories

Switzerland's Oldest Bank Indicted Over US Tax Cheats

Chrysler Roars to $225M Profit

Feds to Charge Crooked Bond Traders

Apple Earnings Soar on Huge iPhone Sales

This Woman's Job: to Make You Like BofA
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne