October 1, 2007 (LPAC)--The largest Swiss bank, UBS, reported a $700 million third quarter loss, most of it the result of the UBS acting as just another sucker for a hedge fund--in this case, its own hedge fund, Dillion Read Capital. This is UBS' first quarterly loss in nine years.

UBS admitted losing $3.4 billion in its fixed income portfolio (translation: U.S. subprime mortgage assets). UBS will now dump 1,500 workers and two top executives, having shut down Dillion Read Capital in May.