今天两宗欧洲金融业的坏消息

henry

UBS Seeks Fresh Capital,
Expects $19 Billion in Write-Downs
Chairman Marcel Ospel
To Step Down as Bank
Unveils $12 Billion Loss
By KATHARINA BART
April 1, 2008 3:12 a.m.

ZURICH -- UBS AG said Tuesday that it will ask shareholders to approve up to 15 billion Swiss francs ($15.07 billion) in additional funds to shore up its dwindling capital base as it unveiled a quarterly loss of 12 billion francs, the result of major losses on U.S. mortgage securities.

The first-quarter loss is prompted by roughly $19 billion in write-downs in illiquid real-estate assets, which UBS plans to isolate in a separate unit.


The News: UBS, one of the worst-hit European banks by the subprime crisis, said it will ask shareholders to approve up to $15.07 billion in additional funds. UBS needs the money to shore up its ailing capital base, as the bank said it will likely have a first-quarter net loss of more than $12 billion.
Raising Capital: The bank said it aims to raise new capital through a rights issue that will be fully underwritten by four leading international banks.
Immediate Cause: The first-quarter loss is prompted by $19 billion in write-downs in illiquid real-estate assets. UBS now plans to establish a separate entity to hold the assets, which eventually could be spun off.
Other Moves: Chairman Marcel Ospel became another victim of the subprime crisis, as the bank announced that he won't stand for re-election at the board meeting April 23.The Zurich-based bank also said Chairman Marcel Ospel won't stand for re-election, making him the latest victim of the crisis, which was sparked by the subprime meltdown in the U.S.

UBS's latest move follows a capital injection and other measures worth more than 19 billion francs earlier this year, and is necessary because UBS is suffering the effects of still holding in risky assets on its books.

UBS itself is eager to pad its capital because a solid base is a prerequisite to attracting wealthy clients to its high-margin private banking arm, which analysts believe is already being hit by outflows as nervous clients withdraw their assets for rival banks.

UBS is whittling down its exposure to risky assets. Over the first quarter, subprime positions fell to $15 billion, from $27.6 billion at year-end, while Alt-A positions -- those that are slightly less risky than subprime loans -- were reduced to $16 billion from $26.6 billion.

"While we are committed to further substantially reducing our exposures, we do not want to undertake sales of positions at severely distressed levels," UBS said.

The efforts at minimizing exposure will be accompanied by an as-yet undisclosed reduction in investment banking and a further tightening of risk and reduction of the bank's balance sheet.

At its flagship private bank, UBS said it expects to conclude the quarter with inflows of fresh client funds, but that its asset management division will record outflows. The money-management arm, which caters to wealthy clients, is being closely watched by analysts for signs of fallout from the investment bank's subprime crisis.

henry

Deutsche Bank
Faces Writedowns
Of About $3.95 Billion
By NICOLAS PARASIE
April 1, 2008 3:23 a.m.

Deutsche Bank AG said Tuesday said it expects to mark down

henry

欧洲银行开始大笔撇帐的时候到了。

吕颖

该来的迟早要来。