Dec 10, 2007 - UBS Announces Further $10B In Losses, Raises Capital.
UBS confirmed analysts' worst fears, posting a further $10B write down.
It also estimated that it had additional subprime exposure of $30B.
It also announced a massive investment from sovereign wealth funds in Singapore and the Middle East. Government of Singapore Investment Corporation (GIC) is taking a 9% equity stake in the bank. An unnamed Middle East investor assumed a 1.5% stake.
The total new capital amounted to $11.5B with a 9% coupon.
The announcement sent shock waves through the markets as investors now lowered expectations for earnings of other banks.
"Conditions in the US mortgage and housing markets have continued to deteriorate, and we have updated our loss assumptions to the levels implied by the current distressed market for mortgage securities," chief executive Marcel Rohner, said in a statement.
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