The Subprime Fallout Continues
It was dejà vue all over again when Swiss bank UBS on December 10 announced a $10 billion writedown of subprime holdings following a similar $3.4 billion hit in October. The bank cushioned the crunch by unveiling an $11.5 billion capital injection from Government of Singapore Investment Group, plus an unnamed Middle East investor.
UBS wasn't the only one feeling the pinch, as French bank Société Générale also said on December 10 that it would take on $4.3 billion in assets to bail out its only structured investment vehicle. Washington Mutual retrenched, slashing its dividend and more than 3,000 jobs in a bid to shore up capital.
And buyout firm Warburg Pincus announced a $1 billion investment in bond insurer MBIA to calm fears over its ability to pay out claims in the mortgage-backed bond market.
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UBS wasn't the only one feeling the pinch, as French bank Société Générale also said on December 10 that it would take on $4.3 billion in assets to bail out its only structured investment vehicle. Washington Mutual retrenched, slashing its dividend and more than 3,000 jobs in a bid to shore up capital.
And buyout firm Warburg Pincus announced a $1 billion investment in bond insurer MBIA to calm fears over its ability to pay out claims in the mortgage-backed bond market.
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posted by Bob Moser at
2:50 PM
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