Filed under: Before the bell, Forecasts, Bad news, Economic data

Swiss banking giant UBS AG (NYSE: UBS) announced this morning it will write down $10 billion, hurt by losses in the U.S. subprime lending market. The company also plans to increase its capital by selling shares to Singapore and an unnamed Middle East investor.

The Government of Singapore Investment Corporation will offer UBS 11 billion francs, while an unnamed Middle East investor will invest 2 billion francs. On its move to raise capital by 19.4 billion francs, the Swiss bank has decided to borrow 13 billion Swiss francs from outside investors, sell treasury shares and replace its cash dividend from 2007 with a stock dividend.

Looking ahead, the bank now expects to swing to a fourth-quarter loss. UBS had predicted back in November it would post a fourth-quarter profit despite pessimistic rumors about its subprime holdings.

Continue reading UBS to write down $10 billion in subprime losses

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This entry was posted on Tuesday, December 11th, 2007 at 7:08 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.