It's just subprime blowing up and being announced today, but with homes in America crashing, and those AAA CDO's soon to go into default as well, these billion dollar write-downs are just the beginning. The losses will be in the trillions folks. Yes, in the trillions. And banks will fail.
LONDON (MarketWatch) -- Swiss banking giant UBS on Monday said it will take a 4 billion Swiss franc ($3.4 billion) hit in the third quarter from its subprime mortgage exposure and plans sweeping management changes and job cuts at its investment-banking division.
The group estimated that it would report a quarterly net loss -- its first in nine years -- of 600 million francs to 800 million francs, compared with profit of 2.2 billion francs in the year-earlier period.