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July 24, 2008 11:40:22 PM CDT

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UBS Posts $12B Quarterly Loss; Chairman Steps Down

Posted Apr 1, 08 6:08 AM CDT in Business,  World 

(Newser) – UBS announced a $12.1 billion first-quarter loss and another $19 billion in writedowns as fallout from the US subprime meltdown continued to haunt the Swiss banking giant, reports Bloomberg. Chairman Marcel Ospel, who oversaw the creation of the bank in 1998 will step down. UBS says it will ask shareholders to approve up to $15.1 billion in new funding.

UBS earlier sold stakes to a Singapore sovereign wealth fund and an unnamed Middle East investor to raise $13.1 billion following a fourth quarter loss of $12.6 billion. The bank also is working to reduce its subprime holdings, aggressively selling off the securities. UBS shares rose 10% in trading today on optimism the worst has been put behind the bank.

Sources Bloomberg, Guardian (UK)

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Peter Kurer, Group General Counsel and member of the Executive Board of the Swiss bank UBS, will become its next chairman.   (AP Photo/Keystone, Handout by UBS)
UBS Chairman of the Board Marcel Ospel will step down.   (AP Photo/Keystone, Alessandro Della Bella)
Swiss bank UBS AG said Tuesday, April 1, 2008 it expected to post first quarter net losses of $12.1 billion.   (AP Photo/Keystone, Alessandro Della Bella)
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