Wachovia; UBS; Legg Mason; Swiss Re: DR Horton
No surprises at Wachovia, #4 U.S. bank, already on the ropes as part of our WWW watch (with WaMu & Wells Fargo),
for whom we reported on 04/14 a "surprise" quarterly loss, while panhandling for $7 billion to stay afloat...
Today, went to file with the SEC and said it lost $708 million in Q1, 80% more than it reported on 04/14.
Sliced with holes like Swiss Cheese, UBS, #1 Swiss bank; reported $17.3 billion of Q1 losses at its investment-banking unit,
plans to cut 5,500 jobs and said clients withdrew a net $12.2 billion from its asset- and wealth-management divisions.
Dwindling capital has forced UBS to seek $15 billion from shareholders in a rights offer
after it raised $13 billion this year from Government of Singapore Investment Corp. and an unidentified Middle Eastern investor (Oman).
The bank which already has taken $38 billion of subprime mortgage-related writedowns, said it plans to exit the municipal bond business
and fire sale $22 billion worth of distressed assets at a 33% discount for $15 billion to BlackRock.
Dieter Winet, at Swisscanto Asset Management "UBS pointed out some problems in private banking, which is their last jewel.
The other two divisions have even bigger problems, as one nearly drove UBS to bankruptcy."
Bonded down, Legg Mason, #2 US bond manager, posted a $255 million loss, its first in 25 years as a public company,
after pumping $517 million into money-market funds hurt by subprime mortgage-tainted debt.
Earnings also have suffered from $26.3 billion in investor withdrawals in the past year. Assets under management -4.8%; revenue -6.4%; operating expense +7.2%.
Legg Mason has set aside almost $2 billion since November to prop up three money funds against losses on debt issued by structured investment vehicles, or SIVs.
To replenish capital, Legg Mason plans to raise $1 billion by selling 20 million equity units, its second cash infusion in the past six months.
More cheese slices, Swiss Reinsurance, the world's biggest reinsurer,
said profit fell a more-than-estimated 53% after a decline in premiums and $782 million of credit market writedowns.
Today's writedown announcement follows a $1.1 billion loss on credit-default swaps announced in November,
raising Swiss Re's total writedowns to more than $2 billion in less than six months.
Horton hears a Who? D.R. Horton, the largest U.S. homebuilder,
reported a record loss as the deepening housing slump forced it to write down $834.1 million of land and inventory. The company cut its quarterly dividend by half.
The fiscal Q2 net loss at was $1.31 billion, almost seven times higher than analysts' estimates. Revenue plunged 38%; cancellation rate 33%; backlog -57%.
Hattip to Bloomberg
for whom we reported on 04/14 a "surprise" quarterly loss, while panhandling for $7 billion to stay afloat...
Today, went to file with the SEC and said it lost $708 million in Q1, 80% more than it reported on 04/14.
Sliced with holes like Swiss Cheese, UBS, #1 Swiss bank; reported $17.3 billion of Q1 losses at its investment-banking unit,
plans to cut 5,500 jobs and said clients withdrew a net $12.2 billion from its asset- and wealth-management divisions.
Dwindling capital has forced UBS to seek $15 billion from shareholders in a rights offer
after it raised $13 billion this year from Government of Singapore Investment Corp. and an unidentified Middle Eastern investor (Oman).
The bank which already has taken $38 billion of subprime mortgage-related writedowns, said it plans to exit the municipal bond business
and fire sale $22 billion worth of distressed assets at a 33% discount for $15 billion to BlackRock.
Dieter Winet, at Swisscanto Asset Management "UBS pointed out some problems in private banking, which is their last jewel.
The other two divisions have even bigger problems, as one nearly drove UBS to bankruptcy."
Bonded down, Legg Mason, #2 US bond manager, posted a $255 million loss, its first in 25 years as a public company,
after pumping $517 million into money-market funds hurt by subprime mortgage-tainted debt.
Earnings also have suffered from $26.3 billion in investor withdrawals in the past year. Assets under management -4.8%; revenue -6.4%; operating expense +7.2%.
Legg Mason has set aside almost $2 billion since November to prop up three money funds against losses on debt issued by structured investment vehicles, or SIVs.
To replenish capital, Legg Mason plans to raise $1 billion by selling 20 million equity units, its second cash infusion in the past six months.
More cheese slices, Swiss Reinsurance, the world's biggest reinsurer,
said profit fell a more-than-estimated 53% after a decline in premiums and $782 million of credit market writedowns.
Today's writedown announcement follows a $1.1 billion loss on credit-default swaps announced in November,
raising Swiss Re's total writedowns to more than $2 billion in less than six months.
Horton hears a Who? D.R. Horton, the largest U.S. homebuilder,
reported a record loss as the deepening housing slump forced it to write down $834.1 million of land and inventory. The company cut its quarterly dividend by half.
The fiscal Q2 net loss at was $1.31 billion, almost seven times higher than analysts' estimates. Revenue plunged 38%; cancellation rate 33%; backlog -57%.
Hattip to Bloomberg
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