UBS declares $330m loss

12 August 2008

Crunch-hit UBS had declared a $329 million loss for the second quarter.

Asset writedowns due to the ongoing credit crisis offset the 3.8 billion Swiss francs gained by the bank through tax credits over the three-month period.

The Zurich-based bank has already taken a financial hit from the credit crunch, with total losses approaching $40 billion.

An ongoing trial of a former banker with the firm has also brought to light embarrassing allegations of employees colluding with rich clients to hide a total of $20 billion in order for them to dodge income tax.

Moreover, UBS is also involved in the ongoing auction-rate securities probe in the US, with the New York attorney having already filed charges alleging that the bank miss-sold the financial products.

In a statement released with the quarterly loss declaration, it said that it does not expect the "adverse economic and financial trends" currently besetting the global markets to clear up in 2008.

Shares in UBS have lost 50 per cent of their value so far this year.

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