It seems that no news is good news. After a few weeks in which nothing has been said about the credit crisis in the U.S, Swiss bank UBS announced that it will write-off nearly 10 billion dollars. 10 BILLION!
Things are so bad at the bank, one of the biggest in the world, that it had to turn to 2 outside investors to fill in the big hole. One of the 2 investors is Singapore's GIC who will invest in return for a seat in theUBS board. The other investor is an unnamed party from the Middle East. The US subprime mortgage crisis claimed another victim. And the worst might be coming, UBS warned that further writedowns is not out of the question. If this is happening to UBS, bets are that other banks are in a similar position. Any banks with any exposure to the crisis-hit U.S mortgage market seems destined for a loss-making year.
No news is good news, because the news are all bad when it come to U.S mortgage crisis.