Business News - U.S. subprime crisis hurting Swiss banker

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U.S. subprime crisis hurting Swiss banker

ZURICH, Switzerland (UPI) -- The subprime mortgage crisis in the United States has caused UBS to face numerous credit losses, the Swiss banking group said Friday.

The global financial services company confirmed that its losses from the economic troubles in the United States were growing in the form of additional write-downs. Analysts told the Financial Times such losses could total as much as $7.2 billion.

The banking group said while its losses in investment banking have renewed, it enjoyed profits in wealth and asset management.

Yet the write-downs have in part caused the company's share price to decline by two-thirds during the last year, the Financial Times reported.

UBS officials have assured investors the Swiss banking group did not need to raise additional capital after raising $29 billion in the past few months.

UBS also confirmed its outflows were highest in April due in part to the problems with subprime lending in the United States, but added such losses declined in May and June.

Copyright 2008 by United Press International

This news arrived on: 07/04/2008

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