Pressures related to the subprime market have taken a toll on UBS, an investment banking and securities firm.
The company reported Tuesday that it experienced a CHF (CHF-refers to Swiss Franc’s currency) 726 million pre-tax loss in the third quarter. UBS added that write-downs related to the U.S. subprime lending market contributed to its losses.
“Our third quarter result was unquestionably disappointing,” said Marcel Rohner, chief executive officer of UBS. “However, we have introduced a number of measures to improve performance. With the new management team, we are implementing changes to address the weaknesses that led to the losses. These include the management, structure, and size of our balance sheet. We are also taking steps to strengthen our market risk management and control framework.”
Click here to read UBS’s full financial report.