UBS has announced an additional $10bn (£4.9bn) writedown after updating the
models it uses to account for its sub-prime exposure.
The bank said: ‘UBS has revised key input parameters of the models that are
used to estimate lifetime default and resulting losses for sub-prime mortgage
pools. As a result of these revisions, UBS will write down its US sub-prime
holdings by approximately a further $10bn.’
The Swiss bank also said that it has been forced to take an £5.6bn capital
injection from the Singapore government and an unnamed Middle East investor to
shore itself up.
In October UBS had announced a £1.8bn of write-downs from the credit crunch,
but this latest disclosure is almost three times larger than the initial hit the
Lloyds TSB also revealed that although it had been affected by the sub-prime
crisis it would be taking a relatively small hit of £200m.
Lloyds said: ‘Like many other financial institutions, the group has been
affected by the recent market dislocation. However, due to our lower risk
strategy, the impact has been limited to approximately £200m at 31 October
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