UBS writes down $3.4 billion in losses - International Herald Tribune
ZURICH: UBS AG, the world's largest wealth manager, unveiled $3.4 billion in losses, swept out senior managers and slashed jobs in one of the biggest casualties yet worldwide from the credit crunch.
UBS said on Monday it would write down a net 4 billion Swiss francs ($3.42 billion) in losses in its fixed income portfolio and elsewhere, resulting in a third-quarter loss of 600-800 million Swiss francs, its first quarterly loss in nine years.
UBS said it would shed 1,500 jobs in its investment bank -- a sharp reversal of its recent build-up.
The news sent UBS shares lower, dragging other banking shares with it, as investors took cover from a credit crisis that has forced numerous rescue manoeuvres by central banks and obliterated profits at those exposed to risky investments, sub-prime mortgages and complicated products.
The loss underscores the depth of the crisis -- which has already seen central banks inject record amounts of liquidity into the markets to keep the financial system functioning -- and underscores uncertainties at rival banks, who may also be forced to unveil losses ahead of their scheduled results announcements.
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