by Calculated Risk on 9/30/2007 04:46:00 PM

From the WSJ: UBS Is Expected to Report Large Loss From Fixed-Income Unit

...UBS ... is projecting a third-quarter loss of ... ($510 million to $600 million) based on a writedown of 3 billion to 4 billion Swiss francs for fixed-income assets ...
...
Its losses resulted from applying sharply lower market values to asset-backed bonds ... Many banks had serious troubles with securities-tied to mortgages when liquidity dried up in the last quarter.

The confessional is now open.