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 Investmen...
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