UBS to post $11.4 bln loss as write-downs climb

LONDON (MarketWatch) — Swiss banking group UBS (UBS:UBS Ag
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4:03pm 01/29/2008

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UBS warned Wednesday that it will report a net loss of around 12.5 billion Swiss francs ($11.4 billion) for the fourth quarter, after higher-than-expected write-downs from its U.S. mortgage exposure. The group said write-downs in the quarter will total around $14 billion, with $12 billion coming from positions related to the U.S. subprime market and the rest from other holdings linked to U.S. residential mortgages.

UBS had previously said it would write down around $10 billion in the quarter. The result will lead to a loss of 4.4 billion Swiss francs for the year. The bank had previously said it may report a loss for the full year.

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