Home > Views > Blogs > Market Movers > How to Make Money from Losing Money, UBS Edition
EMAIL
PRINT
RSS
SHARE
TEXT SIZE:
SHARE
Send a copy to me

Separate multiple email addresses (max 20) with commas.

0/1500

Main
Lehman: Still Ready to Lend Megabucks   The H1-B Fiasco, Redux
Apr 1 2008 8:50AM EDT

How to Make Money from Losing Money, UBS Edition

UBS is the latest bank to see its share price rise in the wake of an absolutely enormous write-down. The $19 billion write-down announced today almost doubles the write-downs taken since the third quarter of 2007, and, in a move reminiscent of Sandy Weill being replaced by Chuck Prince, chairman Marcel Ospel is retiring to make way for his general counsel.

So what does the stock market like here? Frankly I'm not sure. A Sfr15 billion rights issue will do wonders for UBS's battered balance sheet, but it will also dilute existing shareholders enormously. My feeling is that investors are rewarding UBS for getting out of its ostrich pose. But if new chairman Peter Kurer doesn't start showing some impressive results sharpish, I suspect that the market will prove to have very little patience for him.

See more in

Loading...

Add Your Comment

Required fields are marked with an asterisk (*)
Add a comment

Recent Blog Posts

Archive

Previous
Dec
2008
Next


Also in Portfolio.com
Most Read
Most Emailed
Recently Commented