CEO Vikram Pandit sparked a rally in financial shares yesterday by telling staff the bank was having its best quarter since 2007. Is the worst over already? Hard to say. Only time will tell. But the market took it as a sign of hope and help pushed up the DJIA to 300++ points.
On the other hand, UBS is still falling in deeper mess. I guess it is replacing Citigroup as the black sheep of the financials .How low can Citigroup drop to? It has already breach the low of USD1 buck last few week. Now it is standing at USD1.6 because of the CEO's positive comments. People really want to hear good news regardless of how small it is.
March 11 (Bloomberg) -- UBS AG, Switzerland’s biggest bank, posted a 20.9 billion Swiss franc ($18 billion) loss for 2008, more than initially reported, and said it remains “extremely cautious” about the outlook for this year.
The full-year net loss widened by 1.19 billion francs from the figure reported on Feb. 10 because of costs to settle a U.S. tax investigation and additional writedowns on securities, the Zurich-based bank said in its annual report, published today.
DJIA is now at 6936 at the time of writing.
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