Switzerland- UBS Slashes More Jobs On Subprime Losses

Posted under Real Estate, Recession by Darren Hom

UBS is the second-largest bank in Europe.

The bank lost seven billion euros due to its positions in the U.S. real estate sector.

UBS is selling 14 billion euros of its subprime mortgages for 9.7 billion. That’s 69% of face value. Black Rock, the U.S. investment fund buying the loans, is going to make a killing.

The United States is like a concrete block tied to the legs of a hapless swimmer. We’re dragging the world with us, and there’s only one direction we can go.

Down.

Quote from the news clip:

UBS is to cut 5,500 jobs, 7% of the people who work there, and this comes on top of 1,500 previous layoffs. The Swiss bank is Europe’s biggest casualty of the subprime mortgage debacle, and most of the job cuts involve its US and UK investment banking sectors.

UBS reported a first-quarter loss of just over seven billion euros -…