Swiss banking giant UBS has this morning announced a further $10bn (£4.9bn) write down of its US sub-prime holdings.
The news comes as the Zurich and Basel based company revised its Q4 outlook to a loss, while it stated it could also record a 2007 full year net loss.
UBS has already undertaken moves to strengthen its capital base, issuing CHF13bn (£5.65bn) of new capital to the Government of Singapore Investment Corporation (CHF11bn) and an undisclosed Middle East investor (CHF2bn).
“In light of continued deterioration in the sub-prime market, valuations of UBS's remaining sub-prime positions reflect the extreme loss projections implied by the prices achieved in the very limited number of observable market transactions in US sub-prime related securities and indices up to the end of November,” the UBS statement reads.
The UBS board also proposes to replace the 2007 cash dividend to a stock dividend (bonus new shares issue), subject to EGM approval.
UBS plans to hold the EGM in mid-February.
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