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
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)
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(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.