Top bank hit by Facebook loss

One of Europe's top banks took another knock on the chin yesterday from its role in Facebook's botched stock market flotation. Banks are showing the scars from a series of blows: A euro zone crisis that politicians can't resolve, a transatlantic probe into interest rate-rigging, economic stagnation or recession, and regulators tightening the screw. Although still profitable, earnings are down sharply from pre-crisis days and investors worry that these skinny results will become the norm as the industry goes through profound structural change. “It's pretty bleak out there. It's going to be very difficult through the summer,” Chris Wheeler, analyst at Mediobanca in London told Reuters, citing a series of one-off hits and charges adding to the euro zone gloom. In the space of an hour yesterday, four of Europe's top banks laid bare the troubled times and the impact on their bottom lines. Sergio Ermotti, chief executive of Swiss bank UBS which shocked investors with a sharp drop in profit, said: “A return of confidence can only happen when clients believe there is a clear and lasting resolution to today's economic and political challenges, and this will take time,” he said. UBS took a 349 million Swiss franc ($356 million) loss on its role on advising and underwriting US social networking site Facebook's flotation in May. From : Arabnews