UBS Posts Record $11.2B Quarterly Loss

Swiss bank also posts its first annual loss on $13.7B subprime writedowns
By Jim O'Neill,  Newser Staff
Posted Feb 14, 2008 6:10 AM CST
UBS Posts Record $11.2B Quarterly Loss
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 billion) for the fourth quarter,...   (Associated Press)

Swiss banking giant UBS today reported an $11.23-billion fourth-quarter loss—the largest ever by a bank—and its first full-year loss ever, after taking $13.7 billion more in subprime mortgage writedowns, reports the Telegraph. UBS, which still has a $27.59-billion exposure to subprime securities, is likely to take further markdowns in the next quarter, the company said. "UBS expects 2008 to be another difficult year," the bank said in a statement.

UBS, which has suffered more than any other European bank from the subprime contagion, saw shares sink to a four-year low today, continuing a six-month, 40% decline. Writedowns, now totaling $18.4 billion, have caused the bank to sell shares to a Singapore sovereign wealth fund and a Mideast investor to replenish its shrinking capital base. (More subprime mortgages stories.)

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