UBS Cuts 5,500 Jobs, Sells Off $15B in Assets

Swiss bank's shares dive after unauthorized trading revealed

(NEWSER) - A rogue trader at UBS has lost around $2 billion, the Swiss banking giant says. The unauthorized trades by a trader in its investment banking unit "could lead UBS to report a loss for the third quarter of 2011," but "no client positions were affected," the bank said in a statement that offered few other details. Shares in UBS dived almost 10% in early trading after the announcement, which arrived on the third anniversary of Lehman Brothers' declaration of bankruptcy, the Guardian notes. More»

They're near deal to settle allegations on mortgage-bond deals

(NEWSER) - A number of top Wall Street banks are on the verge of settling fraud allegations with the SEC for the mortgage-bond shenanigans that led to the financial crisis, sources tell the Wall Street Journal . The cases are being handled individually, since each bank faces substantially different charges, with the first settlement expected as soon as next week. They represent regulators’ biggest attempt so far to hold Wall Street accountable for the crisis. More»

Bank blames US tax fraud case for some of its 1Q losses

(NEWSER) - Bad times are continuing for UBS in the wake of last year's record loss, the Guardian reports. The troubled Swiss bank reported a $1.75 billion loss in the first quarter, and announced plans to ax 8,700 employees—11% of its global workforce—sparking rumors that it plans to downsize by ditching its investment banking arm to concentrate on wealth management. More»

Complex financial system requires complicated fixes ... and lots of patience

(NEWSER) - With various factions blaming a single factor—and pushing a single solution—for the financial crisis, Steven Pearlstein of the Washington Post cautions that there won’t be a silver bullet. Reducing foreclosures, removing toxic assets, and nationalizing banks will all come into play; meantime, we must “resist the fetching idea that there is a simple, quick and relatively painless way to put a complex financial system back together again.” More»

(NEWSER) - Freddie Mac, the swamped mortgage giant seized by the government two months ago, asked for $13.8 billion from the Treasury today after a record quarterly loss plunged its net worth into the negative, Bloomberg reports. Sister company Fannie Mae, also under government control, said this week it might need funds beyond the $100 billion previously earmarked for each of the firms before the end of the year. More»