The red ink at UBS today does not augur well for Europe’s other investment banks.
Credit Suisse said in a separate update that it was still calculating its third quarter numbers but its investment bank and asset management businesses had been “adversely impacted” by the credit market turmoil.
The Swiss bank, one of UBS’s main rivals, gave little else away, although it insisted that as a group it had still been profitable in the third quarter.
Deutsche Bank has already cautioned that it will “inevitably” be hit by sub-prime and leveraged loan problems, particularly as a result of the market seizing up in August and liquidity all but evaporating.
Deutsche has €32 billion of exposure to asset-backed commercial paper programmes and a total pipeline of