Deutsche, UBS feel subprime pain

Deutsche Bank's first-quarter earnings estimates were lowered by analysts and UBS is planning to slash payrolls by up to 10%.

Two major European financial firms are feeling the effects of the mortgage crisis.
Deutsche Bank AG saw its first quarter earnings estimates lowered by analysts after it announced further write-downs, and UBS AG is planning to slash payrolls by up to 10%, published reports said.
Frankfurt-based Deutsche Bank could report a first-quarter loss of $494.6 million, according to a report issued today by analysts at New York-based Merrill Lynch & Co. Inc., according to published reports.
The bleak earnings estimate by Merrill Lynch is due in large part to Deutsche Bank’s April 1 announcement that it is estimating a write-down of $3.9 billion related to commitments to commercial real estate and residential mortgage backed securities (InvestmentNewsApril 1.
Zurich, Switzerland-based UBS is expected to cut up to 10% of its investment banking and trading unit work force. That could affect as many as 2,200 staffers, according to industry sources, published reports said.
On April 1, UBS officials announced a $19 billion write-down that is expected to result in a first-quarter earnings loss of $12 billion when earnings are released on May 6 (InvestmentNews April 1.