UBS says it misjudged the credit meltdown.

Position:NEWS
 
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The head of Switzerland's largest bank has admitted that the bank underestimated the crisis in the U.S. subprime home loans--and top executives paid for that mistake with their jobs.

Marcel Ospel, UBS president, told the Neue Zuercher Zeitung newspaper the bank over-invested in subprime-related instruments but insisted its size and diversity would ensure its recovery.

"We poorly evaluated the impact of changing interest rates" in the United States, which triggered the problems in that country's mortgage sector, he said.

UBS announced in October that it had taken a hit of SFr 4 billion from worthless subprime investments including early losses from its hedge...

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