Subscribe to this blog's feedAttention paid to UBS is always repaid - today, for example, with its $19 billion writedown.
I remember being shocked by news of a $10 billion writedown not so long ago. (That was UBS too, as a matter of fact; and it turned out to be $14 billion.) Looks like Citi was spot on when it suggested back in November that UBS might be underplaying its subprime exposure.
It will be very interesting to see how this rights issue goes... and also how the plan to hive off all the subprime exposure will work. Are they thinking they can sell this off? To whom? At what unholy discount? If the idea is to gradually unwind it, why create a separate vehicle when the exposure will still be on the UBS balance sheet?
And then there's UBS' troubles with the auction rate securities market too...
