Wednesday, January 30, 2008

UBS Takes a $14 Billion Hit

The hits just keep on coming:

"PARIS — UBS, the largest Swiss bank, said Wednesday that it would write off $14 billion in exposure to the troubled United States housing market and post a net loss for 2007.

The write-offs will result in a record fourth-quarter net loss of approximately 12.5 billion Swiss francs, or $11.4 billion, the bank said in a statement. It also said it expected to report full-year net loss of 4.4 billion francs, or $4 billion, for 2007.

The numbers "include around $12 billion in losses on positions related to the U.S. subprime mortgage market and approximately $2 billion on other positions related to the US residential mortgage market," the bank said."