Citigroup and UBS project poor earnings

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"NEW YORK: Two of the world's largest banks issued dire profit warnings for the third quarter on Monday, at least partly as a result of the recent turmoil in the mortgage markets.

Citigroup estimated a 60 percent drop in third-quarter earnings because of write-downs for securities backed by subprime mortgages and loans tied to corporate takeovers.

Separately, UBS, the biggest bank in Europe, predicted an unexpected loss in the third quarter because of a $3.42 billion write-down for the value of mortgage-backed securities, and announced a management shake-up.
Citigroup and UBS project poor earnings - International Herald Tribune