Further writedowns of $19 Billion revealed by UBS (MarketWatch) (01-04-2008)

LONDON (MarketWatch) -- UBS announced it is raising around 15 billion Swiss francs ($15.1 billion) in a rights issue to buttress its capital base following the revelation of new write-downs of around $19 billion, which means that UBS will report a net loss of around 12 billion francs in the first quarter. Marcel Ospel, the bank’s chairman, will step down later in April.

This is the second time around for UBS, which has been the worst-hit European firm in the credit crisis. At the end of last year, it raised around $13 billion from the government of Singapore and a Middle East investor after losing 12.5 billion francs in the fourth-quarter of 2007.

On Tuesday the bank said it had substantially reduced its real estate related positions through valuation adjustments and disposals in the quarter and will create a new unit to hold its remaining illiquid U.S. real estate assets.

The latest write-down came in at the top end of expectations, but the bank's plans to try and draw a line under its mortgage woes helped lift the shares around 3.3% in early trading.

Chairman Ospel, who is seen as responsible for the strategy that left the bank with such large mortgage exposures, said he won't stand for re-election in April.

The board of directors will propose Peter Kurer, UBS' general counsel, as Ospel's successor at the April 23 general meeting.

 Source:MarketWatch