Stephen Bové - Art, Technology, Right Action

Monday, December 10, 2007

UBS Wipe Out, More Sub-Prime mess, More Inflation on the Way

From the BBC

UBS posts fresh $10bn write-down

"The sub-prime write-down represents more than a monetary loss for UBS - it's a serious blow to a valuable brand...It's further evidence of the transfer of financial power from the western economies to the great cash generating economies of Asia, Russia and the Middle East - which are able to dictate the terms on which they prop up our important institutions" - Robert Peston - BBC business editor

Announcing the fresh write-down - equivalent to its entire net profit for 2006 - UBS said that it had "revised the assumptions and inputs used to value US sub-prime mortgage related positions".

A Middle East investor - reported to be the Oman government - has put a further $1.7bn into the bank.

The Organization for Economic Cooperation and Development (OECD) has predicted that losses will reach $300bn.

More Headlines from today's BBC
- Global debt hit by credit crunch
- Top bankers deny credit failure
- Record defaults hit Freddie Mac
- Credit losses 'may reach $400bn'
- HSBC $3.4bn sub-prime hit
- Stemming panics What lessons we can learn from financial crises in the past
- Bush details housing rescue plan
- Political deadlock on aid
- Carnage on Wall Street
- Foreclosure wave sweeps US
- US housing market crash
- Credit woes 'need private action'

Table of Overseas Sub-Prime Losses so Far:
UBS: $13.5bn
Citigroup: $11bn
Merrill Lynch: $8bn
Morgan Stanley $3.7bn
HSBC: $3.4bn
Bear Stearns: $3.2bn
Deutsche Bank: $3.2bn
Bank of America: $3bn
Barclays: $2.6bn
Royal Bank of Scotland: $2.6bn
Freddie Mac: $2bn
Credit Suisse: $1bn
Wachovia: $1.1bn
IKB: $1bn

Thanks President Cheney.

Now get back to work bailing out the banks and idiot consumer hyper-borrowers with more freshly printed dollars -- so our currency continues to slide into oblivion...