UBS announces $6.9 billion quarterly loss

[WannaJumpMyScooter]

Source: International Herald Tribune

UBS, the Swiss banking giant that sought government help last year, announced plans to cut another 2,000 jobs at its investment banking unit as it aims to return to profit this year following a record loss in 2008. UBS lost 19.7 billion Swiss francs, or $17 billion, last year as it continued to write down the value of some debt assets and wealth management clients withdrew funds. To repair its reputation as one of the world's largest wealth managers and stem client defections, UBS said it would split its wealth management business into two units with one focusing on clients in the Americas and another on Switzerland and the rest. The bank said it was able to attract net money inflows in January and is sticking to its goal of reporting a profit for the full year. "UBS had an encouraging start to the year," the UBS chief executive, Marcel Rohner, said. "However, financial market conditions remain fragile as company and household cash flows continue to deteriorate."


Read more: http://www.iht.com/articles/2009/02/10/news/11ubs.php

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The Swiss are losing money? Crazy times.

[acmavm]

1. Maybe they can tap Phil and Wendy for a loan.

[4lbs]

2. They need to focus on bigger ways than just job cuts.

2,000 jobs @ about $80,000 USD each is only $160 million annually.

Compared to losing $17 billion? That's less than 1%.