Rheias
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Struggling UBS admitted Monday it would write down a further $10 billion in U.S. subprime losses and said it could record losses for the entire financial year.
The Swiss banking giant also said it would borrow 13 billion Swiss francs ($11.51 billion) to strengthen its capital base, including 11 billion Swiss francs from Singapore's state-owned investment company, GIC, and 2 billion Swiss francs from an undisclosed Middle Eastern investor.
UBS's board has also approved the replacement of a 2007 cash dividend with a stock dividend and the re-sale of 36.4 million treasury shares, raising a further 4.4 billion Swiss francs, according to a statement.
Chief Executive Marcel Rohner said the company had updated its loss assumptions in response to deteriorating conditions in the U.S. mortgage and housing markets which had made the value of UBS's subprime holdings "unknowable."
www.nbcnews.com
The Swiss banking giant also said it would borrow 13 billion Swiss francs ($11.51 billion) to strengthen its capital base, including 11 billion Swiss francs from Singapore's state-owned investment company, GIC, and 2 billion Swiss francs from an undisclosed Middle Eastern investor.
UBS's board has also approved the replacement of a 2007 cash dividend with a stock dividend and the re-sale of 36.4 million treasury shares, raising a further 4.4 billion Swiss francs, according to a statement.
Chief Executive Marcel Rohner said the company had updated its loss assumptions in response to deteriorating conditions in the U.S. mortgage and housing markets which had made the value of UBS's subprime holdings "unknowable."
UBS writes off $10 billion in subprime losses
Swiss banking giant UBS AG said Monday it will write off a further $10 billion on losses in the U.S. subprime lending market..
www.nbcnews.com
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