UBS Loss $ 350 Million over Investment on Facebook IPO
Swiss credit bank, UBS, claiming $ 349 million loss because only invest in shares of Facebook. Stock prices on the most popular social networking sites in the world was being plunged.
According to BBC news station, July 31, 2012, UBS’s losses exceed half the value of profits earned in the last three months. In the second quarter, UBS profit of 425 million Swiss francs. This amount is far less than the same period last year, $ 1 billion.
UBS, including victims who suffer due to the falling sales of Facebook shares. When starting initial offering stock sale last May, Facebook was able to gain U.S. $ 104 billion. However, since then, its stock price continued to decline by nearly 40%.
That is why the investors lost a lot. For UBS, it affects their revenue losses in the second quarter.
However, UBS head down, stock up is not the only culprit of the financial performance to decrease. In general, this situation is also related to the financial crisis that hit Europe.
UBS also warned immediately if the Europeans still have not managed to overcome the problems in the banking system in the region, earnings and their earnings will continue to fall. Even in the next period can be no profit at all (flat).
As anticipated, UBS will be more frugal. One way, planned to break the bank began a working relationship over 3500 staff. In addition to UBS, the European banks such as Deutsche Bank also blame the financial crisis in Europe as a cause of decline in their performance.
“The European debt crisis continues to impact on investor confidence and client activity at our bank,” the statement led Deutsche Bank.
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