Swiss banking giant UBS warned today that it will write down the value of its subprime mortgage holdings by a further $10 billion, leading to a loss in the fourth quarter and potentially wiping out all its profits for the year.
Bank of America Corp. said today that it’s shutting a $12 billion a money-market fund of sorts and halting cash withdrawals after losses from complex investments tied to the mortgage crisis.
Washington Mutual Inc., the nation’s largest savings and loan, said today problems in the mortgage and credit markets are forcing it to close offices, lay off more than 3,000 workers and set aside up to $1.6 billion for loan losses in its fourth quarter. Additionally, WaMu slashed its quarterly dividend 73 percent and said it plans a $2.5 billion offering of convertible preferred stock.
However with the rate-cut due tomorrow, this kind of bad news had no effect on the market…infact the exact opposite thing happened. The market added 100+ points..
This is what i call power of the rate cut…!!
|Bank of America
|Royal Bank of Scotland
|JP Morgan Chase