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Continued problems in the credit-card industry that spilled over into the broader markets renewed fears of a recession and sent stocks down sharply Friday, despite hopes for a looming interest rate cut.
UBS has appealed to its shareholders to back a capital injection by the Singapore government and a Middle East investor but warned it still cannot predict how the subprime crisis will play out.
British buy-to-let mortgage lender Paragon announced a deeply-discounted, fully underwritten rights issue on Friday to raise 287 million pounds ($560 million).
UBS's risk exposures have been significantly reduced and the bank does not require further capital injections to shore up its finances, CEO Marcel Rohner told a Swiss newspaper.
What's the trade as BRIC-based IPOs continue to grow?
Sallie Mae, the largest U.S. educational lending company, said it sold $1 billion of convertible securities and $2 billion of common stock, raising more money than it had expected to pay off bad derivatives bets.
Merrill Lynch is the topic today: As Morgan Stanley and Bear Stearns have both taken substantial writedowns on their mortgage-related portfolios, there is speculation that Merrill will also be taking writedowns when they report in January.
European stocks ended lower on Wednesday, as news of strong demand for the Federal Reserve's $20 billion auction designed to ease tensions in credit markets failed to boost banking shares.
Stocks closed with huge losses after the Federal Reserve announced it was cutting interest rates only a quarter point, disappointing traders looking for twice that amount.
UBS CEO Marcel Rohner said that the bank was now protected against all scenarios and would not have to hike capital again after a large capital injection.
U.S. stocks closed higher as investors snapped up beaten-down financial shares on news ofthe latest large injection of funds into a major global bank.
UBS revealed a $10 billion writedown and an emergency injection of funds from Singapore and the Middle East, making it the biggest victim of the U.S. subprime crisis to date among major European banks.
Sometimes weekend newspaper pickups go nowhere and sometimes you hit pay dirt. This morning, putting together "Squawk Box Europe", the team debated the merits of a story carried by the Swiss weekly the Sonntagszeitung. It said UBS management held an unscheduled board meeting at the weekend and could announce more sizeable writedowns.
Futures lower this morning on pressure from the financials. The UBS headline for the bank analyst report this morning tells the story: lower earnings ahead. They are adjusting their 2008 earnings expectations for many banks and brokers.
Fed Pres Donald Kohn moved futures 5 points up at 8 am ET by saying that if tighter credit conditions made credit more expensive and discouraged spending, it "would require offsetting policy action." This seems to imply more rate cuts, whether of the fed funds type or the discount rate.
Shares in Swiss-based bank UBS tumbled temporarily on Tuesday on renewed fears the group may have to make more hefty writedowns for exposure to assets hit by the subprime crisis.
The floor of the NYSE is buzzing with nervousness and excitement. Specialist firm Van der Moolen has announced they are exiting the business; rumors that other big specialist firms will exit are rampant. Is this it? Will the fabled NYSE floor survive?
Several financial institutions have been telling investors that subprime losses may not be as big as feared. Yet many wonder if it's all just wishful thinking.
Good and bad news this morning. Good news: CPI in line with expectations. --More relief on the subprime front. UBS said they do not expect a major write-down of subprime-related exposures.
Banks worldwide may lose as much as $400 billion from subprime mortgages, as at least one in four of the risky home loans go into default, analysts said on Monday.