Citigroup, UBS be pain of financial worries
New sandwich-best home loan fiasco together with ensuing jolt to help you credit markets reverberated around the world once again Saturday due to the fact icon Swiss lender UBS and you may New York’s Citigroup Inc. said they would simply take huge amounts of bucks in fees linked to crappy financing so you’re able to higher-chance U.S. homeowners.
Still, Citigroup and you will UBS offers rose since chief executives out of one another organizations said they asked improved leads to the present day one-fourth, and Dow-jones industrial average hit yet another highest as the traders seemed to wager that the worst had enacted.
Citigroup, the biggest You.S. bank, told you it can dismiss $5.9 mil towards the third quarter on account of requested loss to the mortgage and you will individual banking and because it absolutely was incapable of sell securities backed by mortgage loans and you will corporate-takeover money. (more…)