UBS to Write Down Another $10 Billion

UBS(UBS Quote) on Monday said it would write down an additional $10 billion worth of collateralized debt obligations exposed to U.S. subprime mortgages.

The Zurich-based investment bank also said it would receive a cash infusion of $11.5 billion from two big investors, according to a press release. The government of Singapore is injecting roughly $9.7 billion, giving it roughly a 9% stake in UBS, while an unnamed investor in the Middle East is purchasing $1.7 billion.

Earlier this year UBS had to shut down its alternative asset-management firm Dillon Read Capital due to subprime losses. In October it took a $3.4 billion writedown based on the declining values of its collateralized debt obligations, or CDOs. ...