UBS AG (UBS): More Pain On The Way?

Lehman’s disastrous quarter has fuelled concerns that bank write-downs aren’t over. UBS investors are preparing for the worst (WSJ):

Investors are bracing for more write-downs on mortgage securities from Switzerland’s UBS AG after prices for such holdings have worsened dramatically in recent weeks, and as rival Lehman Brothers Holdings Inc. disclosed a profit warning.

Write-downs announced Monday by Lehman Brothers are “clearly indicative of further write-downs for UBS, as is the deterioration in AAA-rated securities and the U.K. mortgage market,” said Peter Thorne of independent brokerage Helvea in London.

UBS, which originally held over $15 billion in subprime mortgages, is already down about 50% year-to-date.

See Also:
UBS AG (UBS) and Credit Suisse (CS) Cut To SELL on Banking Weakness
UBS to Execs: Don’t Go to US…Because You Might Get Arrested (UBS)

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