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Doug Krizner: One of the largest banks in Europe is reporting its first quarterly loss in nearly five years. Like its brethren, UBS was stung by failed investments in subprime mortgages. We have more from London and Stephen Beard.
Stephen Beard: UBS is the world’s biggest manager of private wealth, but it hasn’t been doing a terrific job managing its own money. The bank lost $600 million in the third quarter.
No mystery about the source of the red ink. UBS has written off $3.5 billion worth of dodgy mortgage-backed securities. The bank warns of further write-downs in the final quarter.
These results say something about the whole credit crunch, says analyst David Buick. The crisis might be far from over.
David Buick: Nobody has any idea what these trashed securities are worth, because we don’t know the full extent of the damage that the housing crisis in the United States is causing. So, to be particularly upbeat at this moment is probably folly.
More bad news is expected later this week. Two other major european banks, Deutsche Bank and Credit Suisse, report their third-quarter figures.
In London, this is Stephen Beard for Marketplace.
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