UBS records loss

Europe
UBS Warburg
Financial Results

(2 October 2007 – Europe) Swiss bank UBS has reported a third quarter loss of 600-800 million francs (A$570-760 million).The report has come after the Zurich based bank wrote down the value of its mortgage-backed securities by about 4 billion Swiss francs ($A3.8 billion).

The loss is the first reported by any of the world’s largest banks and followed Credit Suisse Group saying it had a profitable quarter.

Incoming chief executive officer, Marcel Rohner, said that the loss was an unsatisfactory result, especially after such a strong first half.

He also said that he has therefore taken decisive action and has made appropriate senior management changes.

Head of the investment bank Huw Jenkins and chief financial officer Clive Standish are stepping down.

Current executive vice-chairman, Marco Suter, will become chief financial officer while Walter Stuerzinger, the bank’s chief risk officer, will become chief operating officer.

It has also been reported that there will be up to 1500 jobs lost.

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