Monday, March 17, 2008

SMI Sight

And the SMI sight is not beautiful today:

UBS -12 %, below CHF 25, down from CHF 80 last summer.

Bloomberg: UBS Drops Most in Nine Years on Report of Job Cuts (Update2)
UBS AG, Europe's biggest bank by assets, fell the most in more than nine years in Swiss trading after reports that the company may cut as many as 8,000 jobs, propose a new capital increase and sell businesses.

UBS fell 3.26 francs, or 11 percent, to 25.18 francs by 11:28 a.m. in Zurich. If the shares close at this price, it would be the biggest drop since Sept. 30, 1998. Credit-default swaps on UBS jumped 25 basis points to 235, according to Deutsche Bank AG.
Bear Stearns Cos. had to sell itself to JPMorgan Chase & Co. for $240 million, about 90 percent less than its value last week, after clients, alarmed by speculation about a cash shortage, withdrew $17 billion in two days.
Now the Trader Daily has a funny remark on Bear Sterns:
We don’t know for 100% sure if it’s true that the building housing Bear Stearns is worth three times the bank’s total equity (as the following contends). But we do know that also-ran social networking site Bebo sold for $850 million just before Bear did. And that that is sad.

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