As if banking industry was already not facing enough of tough times, another major financial crisis has put lives and living of thousands in dole drum. USB AG Switzerland’s largest bank is facing huge losses and released details which show that it expects a first quarter loss of 1.75 Billion Dollars. It released its statement on Wednesday before the commencement of annual shareholders meeting. UBS is planning on drastically shrinking its investment banking sector (where most of the losses were reported), by cutting thousands of jobs as it abandons parts of its debt and commodity businesses.

In order to recover, UBS AG is also expected to cut a around 8700 jobs by the end of next year, due to the first quarter loss of almost 2 billion Swiss francs ($1.75 billion).  The bank has been hit hard by subprime-related losses, says it will fine-tune its organizational size to the fluctuating market conditions and cut back on levels of business.

The banking giant is facing problems in two areas including profitability, because it has been hit severely by the mortgage crisis, and in battle with the US government over the bank’s secret offshore accounts.

The banking giant suffered steep losses in 2008 in mortgage investments and despite adopting several tactics, has failed to save itself from financial crisis. However, thanks to reduction of its balance sheet and risk-weighted assets, UBS AG, despite its quarterly losses, expects to have a tier 1 capital ratio of roughly 10% by the end of March 2009. UBS is planning cost savings by the end of 2010 of approximately 3.5 to 4 billion francs compared with 2008 levels.

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Once upon a time, a very long time ago now, about last Friday, Winnie-the-Pooh lived in a forest all by himself under the name of Sanders. (”What does ‘under the name’ mean?” asked Christopher Robin. “It means he had the name over the door in gold letters, and lived under it.” “Winnie-the-Pooh wasn’t quite sure,” said Christopher Robin. “Now I am,” said a growly voice. “Then I will go on,” said I.) One day when he was out walking, he came to an open place in the middle of the forest, and in the middle of this place was a large oak-tree, and, from the top of the tree, there came a loud buzzing-noise. Winnie-the-Pooh sat down at the foot of the tree, put his head between his paws and began to think. First of all he said to himself: “That buzzing-noise means something. You don’t get a buzzing-noise like that, just buzzing and buzzing, without its meaning something. If there’s a buzzing-noise, somebody’s making a buzzing-noise, and the only reason for making a buzzing-noise that I know of is because you’re a bee.” Then he thought another long time, and said: “And the only reason for being a bee that I know of is making honey.” And then he got up, and said: “And the only reason for making honey is so as I can eat it.” So he began to climb the tree. He climbed and he climbed and he climbed, and as he climbed he sang a little song to himself. It went like this: Isn’t is funny how a bear likes honey? Buzz! Buzz! Buzz! I wonder why he does?

Now, I am no financial analyst or economist… So it’s time for you to sound off on your thoughts in general about what’s going on in the Queen City. How is the Wachovia Sale effecting your company? Your job search?

Also, check out some ‘brazen’ tips on how to ‘bullet proof’ your job during a poor economy.

- Rosie Reilman

With the summer coming to a close and employers doing the most downsizing in six years, the job market does not seem to have a whole lot of hope right now. Even those looking towards retirement have just as big of problems to deal with. On top of that it does not help with the stock market crashing. Things are looking very down right now for our economy. So it is time to look forward to what the future may hold in Portland and how this affects our job market.

The unemployment rate in Portland however is exactly the same as the national average in the United States.So the labor cuts and the economic downturn did not appear to affect Portland worse than any company in general. In fact there are cities that have it worse than we do. And those looking towards retirement are doing more and more web surfing and social networking. This means that they are keeping up and surpassing generational trends that may have held them back. After the stock market crashed yesterday things rebounded and are headed in the right direction.

Life always seems to have a series of checks and balances that when one door closes another opens. So don’t always feel that life is out to get you and keep you down in these tough times. Just keep pushing forward and look to the future.