The firm now expects to post a first-quarter loss of around CHF 12 billion, with chairman Marcel Ospel revealing he will not seek reappointment. He will be succeeded by UBS’s general counsel, Peter Kurer.
Following these developments, UBS's total writedowns now amount to $37 billion (£18.5 billion) and have forced the firm to announce plans to issue new shares.
This is designed to raise approximately 15 billion Swiss francs, sufficient capital to offset this latest loss.
Marcel Rohner, CEO of UBS said: "We believe this capital increase and the creation of a vehicle to separate problem assets from the remainder of our businesses will allow us to return to sustainable value creation over time.
"We have reduced risk weighted assets and implemented measures to control costs and strengthen the structure of the firm"
Rohner added that the current period was "one of the most difficult in the history of the industry."
Going into 2008, UBS had warned that it expected to have a much more difficult year. The market turbulence has also affected major US investment bank Bear Stearns, warranting emergency action from the US Federal Reserve.
