Does UBS have any credibility as a broker, given its hugh losses?

ircoha

Last Monday it downgraded all the Irish Banks
http://www.rte.ie/business/2008/0128/banks.html

Shares in the big Irish banks fell sharply in Dublin today after downgrades from broker UBS this morning...

Today
http://www.rte.ie/business/2008/0130/ubs.html

UBS has posted a 12.5 billion Swiss franc ($11.45 billion) loss for the last three months of 2007, dragging the Swiss bank deep into the red for the full year as sub-prime losses took their toll....

Knowing what I do about how these entities operate, I see Mondays brokers report as an attempt to undermine other banks valuations prior to todays announcement.

A Random Walk

ircoha wrote: »

Knowing what I do about how these entities operate, I see Mondays brokers report as an attempt to undermine other banks valuations prior to todays announcement.

Yes, it's the standard response for enormous foreign banks to try and deflect attention by issuing reports on banks in Ireland It really grabs the attention on CNBC when AIB gets downgraded.

All these banks are losing money from one trading desk (mortgage backed securities) but they will typically have several desks which may all be making money. That's why you will see large bonuses continuing to be paid even when a bank loses money overall.

portomar

A Random Walk wrote: »

Yes, it's the standard response for enormous foreign banks to try and deflect attention by issuing reports on banks in Ireland It really grabs the attention on CNBC when AIB gets downgraded.

All these banks are losing money from one trading desk (mortgage backed securities) but they will typically have several desks which may all be making money. That's why you will see large bonuses continuing to be paid even when a bank loses money overall.

agree with the above. davy and godbody are sure to follow their lead on aib any day now too!

daveirl

This post has been deleted.