Citigroup, Swiss Banks point to big losses

"The critical time will be over in the next six months," Chief Executive Marcel Rohner told reporters after UBS shed 1,500 jobs in its investment bank.

Citi said it was taking $1.3 billion in pretax losses on the value of subprime mortgage-backed securities and leveraged loans and another $1.4 billion in pre-tax write-downs on funded and unfunded leveraged loan commitments.

Credit Suisse said its investment banking and asset management results had been hit but gave few further details.

WORLDWIDE PAIN

The banking giants are only the latest in a string of global finance houses that have reported damage from a downturn in the U.S. housing market, which has triggered a global credit crunch.

Banks worldwide have clammed up on lending to each other as they strive to calculate exposure to soured loans, forcing the world's major central banks to inject emergency funds into the global financial system to prevent it grinding to a halt.

"It's probably safe to say UBS won't be the last bank to announce something like this in the months ahead, but it begs the question as to how long this turmoil will continue," said Eamonn Hughes of Goodbody Stockbrokers.

Sources familiar with the situation told Reuters last week Deutsche Bank profits could be hit by up to 1.7 billion euros ($2.4 billion) due to loans that have dwindled in value as a result of the credit market crisis.

But Sony Corp's financial arm successfully raised 348 billion yen ($3 billion) through an initial public offering on Monday after setting the price at the top end of an indicated range, despite jitters which had cast doubt on the flotation.

In stark contrast, shares in beleaguered British bank Northern Rock fell more than 17 percent on Monday after reports of a sharply discounted sale.