Swiss bank UBS has shocked investors by announcing further huge losses from US subprime related investments and it told shareholders that it cannot accurately predict the future development of US residential mortgage markets and so doesn’t know what the final impact will be.
After profits of 2.7 billion and 3.8 billion euros in the first two quarters of the year, UBS suffered a 700 million euro loss in the third quarter and then a massive 9.3 billion euros loss for the final three months of 2007. Its full year loss was 2.7 billion euros.
UBS, which is Europe’s biggest bank, is also one of the hardest-hit worldwide from the credit crisis. It said its exposure to the US subprime mortgage meltdown is 12.4 billion euros – so far – and as a result pressure is mounting on chairman Marcel Ospel to resign.