The Australian
7 Apr 2008
"Since the start of the year, particularly in March, there has been further deterioration in asset quality," Jon Peace, an investment banking analyst at Lehman Brothers, says. "Citi and Merrill have been heavily involved in what are now recognised as the most problematic types of investment. They will have to take further marks against those assets, which will lead to further write-downs."
The pain has not been confined to UBS's senior staff, who received 80 per cent of their pay last year in shares. GIC, the investment arm of the Singapore government, is sitting on paper losses of about pound stg. 2.4 billion on its pound stg. 6.5 billion bailout of the bank late last year. The fund has also pumped money into Citi's $US12.5 billion fundraising earlier this year.
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