by Calculated Risk on 7/04/2008 09:37:00 AM

From the Financial Times: UBS confirms facing further write-downs

UBS on Friday confirmed it faced further heavy write-downs on exposures to troubled US credits, meaning earnings for the second quarter would be “at or slightly below” break even.

Europe’s biggest casualty of the US subprime crisis did not quantify its latest write-downs, which analysts have estimated at up to $7.5bn.
...
UBS said its latest write-downs had stemmed from the effect of “further market deterioration” on previously disclosed positions, particularly adjustments to the value of its exposures to monoline insurers.

Although UBS warned again, the good news is the write downs will probably not be as large as feared, and UBS also said it has no need to raise additional capital.

Note the exposure to monoline insurers. Counterparty risk will be a theme at the big banks this quarter.