UBS Losses, Executives Selling Rights to Buy Shares

UBS is scheduled to take more losses on its mortgage holdings, as prices for these securities have worsened dramatically in the past few weeks.

It is too bad that the deterioration of the UK mortgage market and the supposedly AAA-rated garbage that UBS still carries on its books couldn’t wait until UBS had completed its 15.96 billion Swiss franc capital-raising extravaganza.

The results of the rights issues will be announced Friday, and apparently it is still on track to succeed. Some UBS executives and board members have actually been selling their rights to buy shares, attempting to decrease their holdings in the beleaguered bank. From an investor’s perspective, I don’t blame them; I’d be looking to unload that turkey out of my portfolio too. However, this does not inspire confidence in the rights issue which is being offered at a discount to the market price, although the magnitude of that discount decreases day after day with the slumping stock price.

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Written by GALIQ · Filed Under: Business, Markets  
Tagged: buy shares, Online Trading, Share Trading, Shares, stock price, UBS
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