How do you take these kinds of writedowns, and stay in existance? With a newly admitted 80 Billion of Trash on the balance sheet, how do they raise capital? Who wants to wade into that???
the fast thinking nobel prize winning lunch boxes at Zacks just reduced UBS from BUY to a hold, not sell, hold.. what could they have seen coming ???
YES SWFs and they forgot to tell all their clients that they put long the CDO markets, the firm was shorting those same "positions"at the same time those clients were getting long. Opps, just an oversight.
They surprised their own with that 90 bb of junk they just admitted to. I 'm hearing big exodus over the weekend. Since nobody is hiring, this would be the cream of the crop who can bring an established revenue stream with them (my opinion). MBI is being hunted by Dinallo because NY believes, even with 17BB , that subprime exposure will eat them up. Therefore, it is possible that Dinallo will force MBI to split those businesses so to protect Muni markets. If that is the case, that exposure will chew at UBS like cancer. What I heard was, the firm thought they could unload this, and now, unable to sell it, have to swallow it. Another question, these guys do everything in lockstep, who's next in the industry to fess up?
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true Subprime Explained, or, "how can 80 bb just appear out of nowhere???"