Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Monday, December 10, 2007

UBS Announces $10 Billion Writedown

In what is becoming a familiar pattern, megabank UBS announced a $10 billion writedown due to subprime mortgages and an emergency cash injection, totalling approximately $11.5 billion, from the Singapore government and an unnamed Middle East investor believed to be the government of Oman or Abu Dhabi.  UBS also announced it expected a overall loss this year and cancelled its cash dividend and instead will issue a stock dividend.  The investment takes the form of a convertible preferred stock bearing a 9% dividend.  Singapore will take a 9% stake in UBS.  NYTimes, UBS Declares a $10 Billion Writedown; WSJ, UBS Gains Two New Investors, Writes Down $10 Billion.

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