UBS is expected to announce $11 billion in writedowns

UBS may also layoff up to 8000 people.

Here is the link

The hits just keep on coming everybody. You cannot trust these banks right now.

From the Piece:

Winning Back Trust
``They've got to do something to win back the trust of shareholders,'' said Peter Thorne, an analyst at Helvea in London with an ``accumulate'' recommendation on the shares. ``I wouldn't be surprised if it's more'' than 8,000 layoffs, he said."

My Take:

Quarter by quarter the financials are slowly losing all credibility. How confident will the bottom callers be if the writedowns continue to be relentless over the next several quarters? There seems to be no end in sight as the announcements of losses keep coming. There is also no proof that the losses are close to being over.

The only proof that you have that they are near the bottom are the bank's CEO's promises. Remember how they keep telling you they don't need to raise capital and then a week later they announce thet they just raised capital?

This is the game on Wall St right now. Lie if you have to, just talk everyone into believing that everything is OK and the worst is behind us. This is a crisis of confidence folks. They are as scared as you are. The pump machine is in full force as they try to contain the fear.

If everything is so dam great then why did Buffet announce a $1.6 billion dollar writedown taken by Berkshire on Friday? This is the most conservative guy on Wall St. and even Buffet took losses on derivatives!

Just another warning guys and girls. Trust what you can SEE(fundamentals) not what you HEAR. The banks would simply open their books if everything was OK.

Microsoft also decided this weekend to pull the plug on acquiring Yahoo. Should be an interesting day in the markets tomorrow.