UBS Reports Record Loss

Although the financial services sector made up a significant 15-17% of GDP, in recent years prior to the global financial crisis it had been driving almost 50% of Swiss GDP growth according to government reports.

As they have been known to say up Zurich way, "A greedy person and a pauper are practically one and the same."

AP
Swiss bank UBS reports 4Q loss of $7.57 billion
Tuesday February 10, 2:24 am ET

Swiss bank UBS AG reports fourth-quarter loss of $7.57 billion, exceeding analysts' fears

ZURICH (AP) -- Swiss bank UBS AG said Tuesday it lost 8.1 billion Swiss francs ($7.57 billion) in the fourth quarter and announced it would cut a further 2,000 jobs as it refocuses on its home market after a troubled year abroad.

The results exceeded the fears of analysts, who on average had predicted net losses of 6.2 billion francs ($5.79 billion).

A year earlier Switzerland's biggest bank had reported a net profit of 1.33 billion francs. The latest results bring its full-year loss to 19.7 billion francs for 2008.

UBS said it plans to refocus on its core activity in Switzerland, its international wealth management franchise, and its global onshore business. To this end it will create two new business units. Wealth management and Swiss bank will be led by Franco Morra and Juerg Zeltner, while wealth management Americas will be led by Marten Hoekstra.

UBS is also shedding 2,000 jobs at its loss-making investment banking unit, which has been blamed for many of the bad investment choices that have seen the bank write down tens of billions of francs (dollars) since mid-2007.

The Zurich-based bank said net new money outflows from its wealth and asset management businesses reached 85.8 billion francs during the fourth quarter...