The Wall Street Journal is reporting the UBS will write off the value of a number of instruments held in its fixed income division. Some of these are securities tied to mortgages.
The Journal writes that UBS should have a "third-quarter loss of swiss francs 600 million to swiss francs 700 million based on a writedown of swiss francs 3 billion to swiss francs 4 billion for fixed income assets."
It will be interesting to see if any US banks are forced to make similar announcements over the next several days
Douglas A. McIntyre