UBS to Sell Stakes After $10 Billion in Subprime Writedowns

[ASusilovic]

Dec. 10 (Bloomberg) -- UBS AG, Europe's largest bank by assets, said it will write down U.S. subprime investments by $10 billion and raise 13 billion francs ($11.5 billion) by selling stakes to investors in Singapore and the Middle East.

UBS expects a loss in the fourth quarter, and may have a loss for 2007, the Zurich-based company said in an e-mailed statement today.

Securities firms and banks had announced about $66 billion of losses and markdowns linked to the collapse of the U.S. subprime mortgage market this year. UBS reported its first loss in almost five years in the third quarter after the subprime contagion led to about $4.66 billion in markdowns on fixed-income securities and leveraged loans.

 

[athlonmank8]

Saw this coming

 

[nazzdack]

You and us.........UBS..........they're still full of BS.

 

[makloda]

Quote from athlonmank8:
Saw this coming

Congrats, so you probably made millions on this trade.

 

[drsteph]

Quote from nazzdack:

You and us.........UBS..........they're still full of BS.

Actually, now its You, us.... and the UAE.

 

[Ivanovich]

This should have knocked markets, but they're too fixated on tomorrow's hit from the crack pipe!

 

[ElCubano]

Quote from Ivanovich:

This should have knocked markets, but they're too fixated on tomorrow's hit from the crack pipe!

perhaps tis is behind us....not in news but in market pricing...

 

[Optionpro007]

Next time your mortgage company contacts you, just tell them you have also written them off.

It's just that easy !

 

[Ivanovich]

Quote from ElCubano:

perhaps tis is behind us....not in news but in market pricing...

I don't think these kinds of things are priced in before they are known. I just think the market is looking for Uncle Ben to provide the cash drop. After that, it depends on what we get in the form of a statement. But even the statement is beginning to be ridiculous.

"Ok, one more, but this is the last!" When the market knows it's not the last.

Like a kid taking cookies from the jar.

 

[arealpissedgoy]

http://www.youtube.com/watch?v=tkuW8bCjC6c


Hilarious. For the longest time I never could figure out why someone would pay 600K for a 500 sqft closet sized "loft" (whatever that is). 70% of take home pay spent on living in a shoebox. Stupidity coming home to roost.