UBS doubles sub-prime writedowns
UBS had warned that 2008 would be a tough year.
Swiss financial giant UBS has reported that its writedowns as a result of the sub-prime crisis have more than doubled to about $37bn (£18.5bn).
It has announced $19bn of fresh asset writedowns on top of the $18.4bn it wrote off in 2007.
UBS also said that it was seeking to raise 15bn Swiss francs ($15bn; £7.5bn) in capital by issuing new shares.
The latest developments are damaging to the firm, which is the European bank worst hit by the credit crisis.
The announcements came as it said it expected to post a first-quarter net loss of $12.1bn.
Today's announcement will alarm both UBS shareholders and the markets
Robert Peston
BBC Business editor
Read Robert's blog
It also announced that its chairman and former chief executive Marcel Ospel would not be seeking re-appointment.
Widespread damage
UBS also unveiled plans to create a new business that would handle US property assets which had become worthless.
It said that it was confident that this would "deal effectively with the firm's real estate exposures and allow the bank to focus on strengthening its core operations".
The US sub-prime problems have hit the balance sheets of banks worldwide.
UBS management warned that it expected 2008 to be a difficult year for the firm and the industry as a whole.
In 2007 it reported its first annual loss since UBS was created from the merger of Union Bank of Switzerland and Swiss Bank Corporation in 1998.
Sub-prime loans were lent to US homebuyers with low incomes or with patchy credit ratings.
These investments quickly soured as higher interest rates pushed up mortgage payments and triggered a wave of defaults.
As well as resulting in the collapse of Bear Stearns, it has also hit other big Western banks, including Wall Street giants Merrill Lynch, Citigroup and JP Morgan Chase, and BNP Paribas, France's biggest bank.
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My swiss bank
- however will see what their shares will be selling at if they intend to float more - I only keep some money there at the moment so may consider some shares with them too if they are reasonably priced and wait a few years for a full recovery
