Stocks Rise Despite Further $10B Loss at UBS
Stocks are off to a strong start this week, despite another major writedown, as investors look to the Fed to ease rates.
UBS
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PowerRating) announced a further $10 billion in writedowns and revised its Q4 outlook from a profit to a loss. The company now expects to report a loss for full-year 2007. However, the bank was able to strengthen its capital base, thanks to an 11 billion Swiss franc investment made by the Government of Singapore Investment Corp. (read more).
MBIA
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PowerRating), the troubled bond-insurer, also received a cash infusion. Warburg Pincus agreed to invest up to $1 billion in the company through a direct purchase of MBIA common stock and a backstop for a shareholder rights offering (read more).
Ambac Financial
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PowerRating) is trading higher on the MBIA news (read more).
Freddie Mac
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PowerRating) announced operational changes for delinquent loan purchases (full story).
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