UBS Pulls A Citigroup – Takes $10 Billion Subprime Writedown, Receives $11.5 Billion Investment
The big news this morning is an announcemement by UBS that they will take a $10 billion writedown on their US subprime exposure and also that the Singapore Investment Authority ($9.75 bil) and an unnamed Middle East investor ($1.75 bil) have made investments totalling $11.5 billion in the bank (Press Release).
If you recall, it was the $7.5 billion investment by Abu Dhabi in Citigroup two Tuesdays ago that was the cause of the first day of what has proved to be a powerful, two week (so far) rally.
Markets are again taking the news positively (Dow +100, S&P +11.5, Nasdaq +14).