The Swiss banking giant, UBS, reported today that they will be taking a loss in third quarter of this year for $3.4 billion because of its exposure to the sub prime crisis. It will be the first loss in 9 years. The $3.4 billion loss is larger than we’ve seen so far from banks in the United States. There’s still $19 billion of retail mortgage backed securities remaining at UBS.
As a reaction to these losses, UBS announced massive restructuring and job cuts. You can get the full story at CBS Marketwatch.
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2 responses so far ↓
1 Joe Bartolotta // Oct 3, 2007 at 12:12 am
Hello,
This will unfortunately be the first of a few quarterly losses for UBS. Their exposure to subprime mortgages is only now just being realized.
I hope that they are able to turn it around sooner rather than later. Actually, I hope the whole industry is able to turn it around sooner rather than later.
2 Hojin Chang, Real Estate Real Easy // Oct 3, 2007 at 12:18 am
Thanks Joe for your insights from the mortgage end of things.
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