UBS Feels the Sub-prime Mortgage Blues

UBS announced $3.4 billion in write-downs, including deep mortgage losses at a hedge fund it operated, and said it would report its first quarterly loss in nine years. It slashed 1,500 jobs and ousted the head of its U.S. investment banking operations, saying its new CEO, Marcel Rohner, would run the division.

UBS rival Credit Suisse Group also said Monday that its investment banking and asset management operations had suffered in the third quarter but that the company would still record a profit for the period.