UBS took a net loss equal to about $11.28 billion for the fourth quarter due to almost $14 billion of residential mortgage-related writedowns that largely matched an earlier earnings estimate by the company. "While most of our businesses continued to be very profitable, the sudden and serious deterioration in the U.S. housing market, in combination with our large exposure in subprime mortgage-related securities and derivatives, has driven us into loss," said Marcel Rohner, UBS chief executive officer. The company's residential mortgage-related losses consisted of $10.8 billion related to U.S. subprime loans, $2.0 billion related to U.S. alternative-A loans, and $871 million related to bond insurer credit protection on U.S. residential mortgage-backed security collateralized debt obligations.
