Garlic 1st Gear May 6, 2008 Share May 6, 2008 Source: http://sg.news.yahoo.com/afp/20080506/tts-...gs-c1b2fc3.html AFP - 1 hour 15 minutes ago ZURICH (AFP) - - Swiss banking giant UBS, reporting huge losses in its subprime loan debacle, said on Tuesday it would cut up to 5,500 jobs within the next year which it forecast would be tough. The bank posted a net loss of 11.535 billion Swiss francs (7.075 billion euros, 10.972 billion dollars) for the first quarter owing to its US subprime-related positions, as well as writedowns of 19 billion Swiss francs. The results were in line with a warning the bank issued in April saying it expected a net loss of about 12 billion Swiss francs for the first three months of this year. UBS, the biggest Swiss bank, is the bank hardest hit in the world by the subprime crisis, having made asset writedowns of 37 billion dollars. And it said on Tuesday that this year had begun with "tough business conditions" which it expected to continue. "The impact will affect all of UBS's businesses and it requires the firm to manage costs, resources and capacity very actively," the bank said. It said it would cut 2,600 jobs from its investment bank unit by the year-end, most through redundancies. Staff would also be trimmed in other departments, mainly through normal departures and internal redeployment, the bank said. Assuming no change in market conditions, it expected to have 5,500 fewer employees by the middle of 2009. The bank also said it had "substantially reduced its risk inventory". Positions related to US subprime mortgages had been cut by about 60 percent compared to the figures for the third quarter of last year. Chief executive Marcel Rohner said the group's exposure was still subject to market conditions, but "we see market demand for these securities returning in certain areas and at the current level of valuations." UBS "will get over these difficulties in the coming quarters," Rohner assured journalists on a telephone conference, although he declined to specify when exactly he expected the bank to return to profitability. UBS has had to seek fresh capital twice, once from a Singapore sovereign wealth fund and an anonymous Middle Eastern investor and a second time from its shareholders. UBS shares fell by 3.85 percent to 35.46 Swiss francs in early trading on the Zurich stock exchange. The overall SMI index was down 36.27 points to 7,621.99. ↡ Advertisement Link to post Share on other sites More sharing options...
Beetle Neutral Newbie May 9, 2008 Share May 9, 2008 Next is Citibank. http://www.bloomberg.com/apps/news?pid=206...BIN368&refer=us Link to post Share on other sites More sharing options...
Onenightstd2 Neutral Newbie May 9, 2008 Share May 9, 2008 I seriously think our loans to them have gone into the drain. Link to post Share on other sites More sharing options...
Beetle Neutral Newbie May 9, 2008 Share May 9, 2008 Oh no, that's not what our MIW will wanna you to think. Long term investment, remember? Link to post Share on other sites More sharing options...
Application9999 Clutched May 9, 2008 Share May 9, 2008 another screwed up investment by our elite from the world highest pay talented government...knn Link to post Share on other sites More sharing options...
Beetle Neutral Newbie May 9, 2008 Share May 9, 2008 Compared to the boo-boo in Shin C*** in our neighbour country, this is nothing... Interesting to note that our friendly Straits Times is very quiet over such news. Link to post Share on other sites More sharing options...
Alcapone Neutral Newbie May 9, 2008 Share May 9, 2008 So when is GIC's turn? Link to post Share on other sites More sharing options...
Application9999 Clutched May 9, 2008 Share May 9, 2008 grandfather Lee will not allow his dog anyhow bark ...you know..that's why u see nothing..hear nothing....just so called ''good news..'' Link to post Share on other sites More sharing options...
Apollo 1st Gear May 10, 2008 Share May 10, 2008 http://www.stanfordreview.org/Archive/Volu...features3.shtml TSR: Recently, Singapore, South Korea, and Kuwait bought a $21 billion stake in Citigroup and Merrill Lynch. What is your opinion on sovereign wealth funds and their impact on the U.S. economy? BS: Well, I think if these guys (sovereign wealth funds) are wise investors, it ↡ Advertisement Link to post Share on other sites More sharing options...
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