BusinessCompany NewsUBS forced to write down another $US5bn

UBS forced to write down another $US5bn

Swiss bank giant UBS has been forced to write down another $US5bn in assets

UBS,the Swiss
banking giant, has been forced to write down another $5bn (£2.79bn) in assets,
on top of the $42.5bn in its sub prime-related assets written down already, and
is expected to record a loss in the second half of the year.

Sub prime losses account for $1bn of the writedowns and Alt-A loans, the
next lending classification after sub prime in credit terms, represent another
$1bn, according to the Evening Standard.

UBS investments in bond insurers will account for the rest of the writedown.
The bank has already written down $42.5bn on its sub prime-related assets and
recorded a net loss of Sfr358m (£217.6m) in the second quarter.

Chairman Peter Kurer maintained the bank would be profitable from next year,
likening UBS’s position to the second face in the aftermath of a bad storm: ‘One
must first remove the fallen trees, then tidy up the house and cellar, and in
the third phase, bring the shine back to the house’.

Further reading:

UBS looks to settle private banking tax issues

Read
The Evening Standard story

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor