Citigroup, UBS Say Subprime Losses Damage Third-Quarter Results |
| Bloomberg - Oct 1, 2007 |
Citigroup Inc. and UBS AG, the largest banks in the U.S. and Europe, said writedowns sparked by the U.S. subprime mortgage meltdown ravaged third-quarter results.
Citigroup, based in New York, said earnings fell about 60 percent from a year earlier, while Zurich-based UBS reported its first quarterly loss in almost five years and said investment- banking chief Huw Jenkins is stepping down.
Losses on securities related to home loans and leveraged buyouts are exacting a growing toll on Wall Street. Citigroup will write down leveraged loan commitments by $1.4 billion, and reported losses of $1.3 billion before tax on subprime-related assets and $600 million from fixed-income trading. Credit costs rose by $2.6 billion before tax as loan provisions climbed, the bank said in a statement. UBS had losses on fixed-income securities of more than 4 billion Swiss francs ($3.4 billion) and plans to shed 1,500 jobs.
Read Full Article from Bloomberg
- Posted: 2007-10-01 10:18:57
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