Monday, December 10, 2007
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.