Banks are scrambling to reassure the market they're in decent shape. Pressure began mounting Tuesday after Goldman Sachs sold $5 billion in stock and announced plans to pay back TARP money. It continued to increase after the federal government said it plans to release more information about bank "stress tests." All the banks may be passing, but the ones getting low marks could face another pummeling. So pre-announcements of bad news might just be getting started.
Here's the latest from UBS, which includes another round of job cuts.
From MarketWatch:
UBS shares fell as much as 9% Wednesday after the struggling Swiss bank said it expects to post a loss of nearly 2 billion Swiss francs ($1.8 billion) for the first three months of 2009 and added that nearly 9,000 more staff will lose their jobs.
The group said it will reduce its workforce to around 67,500 in 2010, from the current 76,200, which will help it slash costs by between 3.5 billion francs and 4 billion francs. Roughly 2,500 of the cuts will be in Switzerland.
In a statement UBS' newly appointed chief executive, Oswald Gruebel, also said that despite positive early signs, clients continued to withdraw their cash in the quarter.
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Insider of CA 12:39PM April 25, 2009
Muser of NM 11:07AM April 15, 2009