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LONDON (MarketWatch) -- Swiss investment banking giant UBS said Monday that it will post a loss for the fourth quarter and may post a loss for the year as it writes down its U.S. subprime holdings by a further $10 billion.
To shore up its capital position, UBS said it's issuing 13 billion Swiss francs ($11.5 billion) of new capital. It's placed 11 billion francs with Government of Singapore Investment Corp. and the rest with a Middle East investor that it didn't identify.
The bank said that it intends to strengthen its capital position by replacing its 2007 cash dividend with a stock dividend
UBS revised the assumptions and inputs used to value its U.S. subprime-mortgage-related positions. The move, it said, is a response to continued deterioration in the U.S. subprime-mortgage-securities market, driven partly by increased homeowner delinquencies but mainly by worsening market expectations.