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.
16 comments:
Is that Billions with a "B" -ouch!! that's going to leave a mark.
Oh great, I guess we should expect a huge rally in stocks today based on this bad report.
Chuck Prince also farted big today.
Used to work there... way back.
All of wall street is PC now.. no more fancy dinners, limos, boom boom rooms.. all been shut down.
now working there is like OFFICE SPACE.. INOTECH. TPS REPORTS>
Seriously. In the Stamford Trading floor, which was world famous when built in 97/98, it was overflowing with traders.
Now it is emptying out... about 60% trading, and the rest is IT and Support.
this maybe funny to you bloggers, but this will trickle down to all levels.
The difference is, these UBS peopel... most of them... have a few hundred thou saved,... some millions.
The will still eat steak tonight... and atleast it won't be some sh;t generic restaurant like y'all have in PHOENIX
Citi Group announced bad news to. Ooops
When will IndyMac "mark to market"??????
I seem to remember their ceo saying something about holding various securitized loans because they couldn't get the value he felt they were worth.....
It is an odd situation. Some say its just the satrt for UBS. I can't see it. If the other $19bn were going to defualt surelt the new chief would have lumped them all in.. after all they are still on to make SFr10bn for the first nine months of this year.
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(1) Grease
(2) Insert
(3) Enjoy
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How can Moody's and S&P and whoever else helped these bad loans get rated as AAA be found guiltless of any wrong doing? These f**kers have helped plant the seeds of destruction all over the world. When is the rest of the world gonna grow a pair and bitch slap Wall Steet for this fraud. I can't believe there hasn't at least been more backlash from Europe over this mess. Why don't we hear more about this fraud conducted by these shady agencies? Because its all connected at the top, along with the MSM following their orders as well. What they don't report is more important than what they do report. What I mean is, what they are not allowed to report is more important than what they are.
1929
The more compelling story is the Michigan State government shutdown.
As goes Mich................
this is what happens when all the other sh!t happens first.
Keith -
Just one point - you stated that banks will fail. Perhaps a change in tense is in order - NetBank? It's great to see the Fed open the window, accept junk paper, cut rates to bail out speculators - wall street - etc. but when they shut down a bank, the savers with more than the FDIC limit - get to see them in receivership ...
Who could have predicted it?
**** What no one is talking about...
Where does the demand come from to take up the slack?
There's more to things than just getting through things now.
What's amusing is that the Dow hit a record high, because -- really! -- Citibank and company just reported HUGE losses this last quarter, "suggesting that they are willing to admit the loss and have put the worst behind them."
(to the stock buyers:) DOPES!!!
Dow breaks records! If this doesn't prove that we're in Disneyland, nothing will.
The problem is the losses are so big and so many big investors were caught with their pants down we will only get it in drips and drabs.
Eventually, some big investor, like a Bear Stearns, will again try to sell the crap and establish a value and the exit door will get very crowded.
All we can do is protect ourselves (somehow) and watch the show. It is sort of like pass the hot potato as the world markets are trying to spread the damage. We are progressing as predicted and more pain is on the way!
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