Home >> Stock Forums >> USB Writes Off 10 Billion On Sub-Prime Lending

USB Writes Off 10 Billion On Sub-Prime Lending

Heather said: "Looks like USB is taking a multibillion dollar hit on subprime lending - 10 to be exact. [QUOTE]“Conditions in the U.S mortgage and housing markets have continued to deteriorate, and we have updated our loss assumptions to the levels implied by the current distressed market for mortgage securities,” the company’s chief executive, Marcel Rohner, said in a statement. “In our judgment these writedowns will create maximum clarity on this issue and will have the effect of substantially eliminating speculation,” he added. “UBS revises its outlook for its fourth quarter 2007 from an overall Group profit, as anticipated in its announcement of 30 October 2007, to a loss. It is now possible that UBS will record a net loss attributable to shareholders for the full year 2007.”[/QUOTE] The company is planning on raising capital by selling substantial stakes to Singapore and an unnamed investor in the Middle East. I suppose that this announcement comes as no surprise to me.. how about you? [URL="http://www.msnbc.msn.com/id/22180574/"]MSNBC[/URL]"

AlfredSokol said: "The only people in the world with money these days are in the Middle East, apparently. Ironic, I think."

Airelon said: "Just remember, a write-down is not an outright loss . . ."

Darren said: "True. Things could have been even worse."

Heather said: "That is still a pretty substantial amount of money, no matter how you look at it."