Balance sheet concerns plunges UBS shares
UBS has now increased its estimated quarterly losses by £2bn to £7bn
The US sub-prime mortgage crisis has taken more victims as Switzerland’s
banking regulator warned Thursday that the country’s two largest banks could
face further write-downs.
Shares in UBS and Credit Suisse fell swiftly yesterday afternoon with UBS,
the country’s largest bank, dropping 8% and Credit Suisse, Switzerland’s
second-largest bank, falling 6 per cent.
Daniel Zuberbühler, the director of the Swiss Federal Banking Commission,
said: ‘People here are talking about the next hotspots, meaning areas that will
come under pressure next … It cannot be ruled out that there could be more
[losses] to come,’ the
Times
reported.
USB has now increased its estimated quarterly losses by £2bn to £7bn. UBS’s
total sub-prime losses of £9.2bn are so far reckoned to be the highest of
European banks.
Further reading:
UBS announces further write-down – £9bn to date
UBS takes further $4bn hit on sub-prime