Tuesday, May 6, 2008

UBS $11B loss

Swiss bank UBS reported a net loss US$10.97 billion for the first quarter of this year. With this loss UBS also announced 5,500 job cuts. UBS had made about 3 billion francs profit in the same period last year. UBS is Switzerland's largest bank.

UBS has been struggling to regain investor confidence since posting a series of heavy losses that prompted shareholders to demand radical action to turn the business around.

"We can see tangible effects as a result of our initial responses to the losses," CEO Marcel Rohner said in a statement. "While our exposure is still subject to swings in market conditions, we see market demand for these securities returning in certain areas and at the current level of valuations."

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