UBS Sees ‘Modest’ Profit After Trading Loss

UBS AG (UBSN), Switzerland’s biggest bank, expects a “modest” third-quarter profit as gains from wider credit spreads and the sale of bonds cushion the $2.3 billion loss from unauthorized trading.

The bank expects a fair-value gain of about 1.5 billion Swiss francs ($1.6 billion) as its credit spreads widened in the third quarter and a 700 million-franc profit from the sale of U.S. Treasuries and U.K. gilts held in the wealth-management and Swiss bank division, the Zurich-based company said today.  More

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