Swiss bank in turmoil

UBS chairman Marcel Ospel abruptly resigned today as the Swiss bank reported a first-quarter loss of US$12 billion, news agency AP has reported.

The European banking giant revealed more serious damage from exposure to the US sub-prime crisis and said it expects write-downs of approximately US$19 billion.

Deutsche Bank AG, Germany's largest bank, also announced write-downs of about US$4 billion.

It was the latest indication of how far the severe plunge in US housing prices and a credit crisis triggered by rising mortgage defaults has reached.