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

Write-downs on investments surpass $3 billion

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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.