UBS doubled its writedowns from the subprime crisis today as it sought more emergency capital.
UBS wrote down an additional €12 billion in ailing assets, bringing to €23 billion the damage wrought by the subprime crisis and causing a net loss of 12 billion Swiss francs (€7.6 billion) in the first quarter.
It pushes UBS, Switzerland's flagship bank and financial fortress for rich investors, past Merrill Lynch to the top of the league of write-down shame.
UBS said it would seek another 15 billion francs (€9.5 billion) through a fully underwritten rights issue of shares, bringing to 34 billion francs (€21.6 billion) the total of emergency capital sought by UBS, and that it would hive off ailing portions of the bank into a separate unit.
This is UBS's second attempt to put the crisis, born of its speedy expansion into investment banking, behind it.
Shares in the bank rallied as traders who had bet on even worse news struggled to cover their positions and as investors hoped the moves were enough to put the bank back on track.
UBS shares were up 7.4 per cent to 30.98 francs (€19.68) by mid-morning, and other bank shares also rose.
The bank also said chairman and former chief executive Marcel Ospel would not be seeking re-appointment.