UBS may write-down Dh17.6bn more

UBS, Switzerland's biggest bank, is likely to write down an additional five billion Swiss francs (Dh17.6bn) and post a loss of 4.55 francs per share in 2008, JPMorgan Chase said.

"UBS remains a building site," London-based analysts led by Kian Abouhossein wrote in a report to investors, citing estimated net new money outflows of 41 billion francs in the second quarter and an additional markdown of five billion francs. The brokerage company lowered its price estimate for UBS shares to 33 francs from 43 francs to adjust for the completion of the rights offer.

In another development, Morgan Stanley, the second-largest US securities firm, hired five bankers who worked in UBS's municipal-bond department, which is closing, according to two internal memos.

The company hired Geoff Proulx, James McIntyre and Patrice Mitchell to work in the housing finance group, Stratford Shields, the head of public finance said in the memo released by Morgan Stanley. Proulx will become an executive director and will co-head the housing group with Kimberly Welsh, already at the firm.

McIntyre will become a vice-president, and Mitchell will work as an analyst.

"In the last six months, Morgan Stanley has been appointed senior manager to six state housing finance agencies," Shields said.

"I believe that our new colleagues will help build our business to make us a significant player in the single-family housing business."

New York-based Morgan Stanley said it had hired Joan Marron, the former co-head of health care finance at UBS. Barbara Scudder will become a vice president and work with Marron in the health-care group.

Stone & Youngberg also said yesterday it had hired three bankers from UBS.

Follow Emirates 24|7 on Google News.