Industry News

Subprime losses prompt Swiss bank UBS to lay off 1,500

Write-downs on investments surpass $3 billion

UBS AG said it would lay off 1,500 workers and predicted third-quarter losses will exceed $500 million after deteriorating conditions in the U.S. subprime mortgage market forced the Swiss-based bank to write down the value of billions in investments. In other news related to problems in mortgage lending:   Analysts at Fitch Ratings said they placed the corporate debt of Indymac Bancorp and residential servicer ratings of Indymac Bank on "Rating Watch Negative" for possible downgrade.     A trade group said there were 58,441 defaults on home loans with private mortgage insurance in August, up 30 percent from the same month a year ago.     Washington Mutual announced new procedures for working with mortgage brokers.   Pretax losses in UBS's Investment Bank division are expected to total between 600 million and 800 million Swiss francs -- or more than $680 million U.S. dollars, said UBS Group Chief Executive Officer Marcel Rohner in a press releas...

Comments