WEDNESDAY JANUARY 30
UBS Or Bust

The fourth-quarter loss posted by UBS today is a record-breaker on several fronts: it is the biggest loss since the bank’s inception (following its merger a decade ago). It is almost double what analysts were expecting. And it handily tops the breathtaking losses of Citigroup and Merrill Lynch – no small feat, even for such a large bank. While the worst could be over, few market observers are willing to go out on a limb and say that they don’t expect more setbacks where these came from. As one money manager puts it, “Risk management must have been non-existent, as [UBS] seemed to find massive exposure in all sorts of pockets…'' Read on for the grand total of damages – and more on what went so terribly wrong.

January 2008

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