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UBS Posts Record $11.2B Quarterly Loss

Posted Feb 14, 08 6:10 AM CST in Business 

(Newser) – 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.

Sources Daily Telegraph (UK), Bloomberg

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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 logo of Swiss Bank UBS on Zurich's Bahnhofstrasse, Switzerland, Wednesday, Jan. 30, 2008. Swiss Bank UBS AG said Wednesday it expects a net loss of 4.4 billion Swiss francs (US$4.03 billion; euro2.73...   (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. UBS said Monday Dec....   (Associated Press)
A logo of global financial services company UBS is seen in central London, Monday Oct. 1, 2007. Swiss bank UBS AG, which already replaced its top executive and closed down a hedge fund unit this year,...   (Associated Press)
A man walks past the building of global financial services company UBS in central London, Monday Oct. 1, 2007. UBS today reported its first-ever annual loss.   (Associated Press)
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