![]() ![]() “The optimists would say the quicker it’s out, the quicker it gets digested and life moves on,” said David Bowers, at Absolute Strategy in London. EST as investors took heart from UBS's decision to end weeks of mounting uncertainty about likely fourth-quarter charges. The Dow Jones European banking Stoxx index. Royal Bank of Scotland RBS.L, Britain's second-biggest bank, was the last of Britain's major banks to unveil a writedown, last week saying it would make a smaller-than-expected $2.5 billion charge. "The lesson is that investment banks will do it all in the fourth quarter," said the British bank analyst, who said he expected Citigroup C.N and Merrill Lynch MER.N to face the heaviest writedowns. The subprime debacle has triggered a global credit crisis as banks sift through their portfolios of mortgage-backed securities and take charges on any exposures that have been contaminated by subprime borrowers defaulting on loans. subprime mortgages - loans made to borrowers with poor credit histories. UBS’s move puts pressure on other banks, especially those with large investment banking operations, to clear up any remaining overhang from the meltdown in U.S. ![]() ![]() “Everyone assumes there is more to come from other banks but UBS was seen by investors as being behind the curve,” said a London-based analyst with a major British bank who asked not to be identified. and European banks but none seems set to follow UBS and call on Asian or Middle East investors to shore up its balance sheet.Īfter advising for weeks there were no huge charges on the horizon, UBS stunned the market on Monday with the massive writedown, saying it had obtained a 13 billion Swiss franc ($11.52 billion) capital injection from the Singapore government and an unnamed Middle East investor. bank unveiled huge subprime-linked charges.ZURICH (Reuters) - UBS’s shock $10 billion writedown on subprime exposure warns of more pain to come for U.S. The Abu Dhabi Investment Authority invested $7.5 billion in Citigroup last month after the U.S. “It’s better than a bank denying it has a problem in the first place.”Īlthough many Western banks on both sides of the Atlantic have taken a total of tens of billions of dollars in writedowns on their subprime-related exposures, UBS is only the second global bank after Citigroup C.N to seek an emergency capital injection from a cash-rich sovereign wealth fund. British time as investors took heart from UBS's decision to end weeks of mounting uncertainty about likely fourth-quarter charges. subprime mortagages - loans made to borrowers with poor credit histories. REUTERS/Alessia Pierdomenico (BRITAIN)Īfter advising for weeks there were no huge charges on the horizon, UBS stunned the market on Monday with the massive writedown, saying it had obtained a 13 billion Swiss franc (5.6 billion pound) capital injection from the Singapore government and an unnamed Middle East investor. The dollar retreated from an earlier one-month high versus the yen on Monday after a $10 billion subprime writedown by UBS fanned concerns about the health of the global financial sector. A UBS logo is seen outside a building in central London December 10, 2007. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |