We’re always hearing about how there are liquidity issues effecting the US markets.  Stories like Bear Sterns, the stock market, etc.   Earlier this week MSNBC reported that two of the largest European banks reported subprime related write-downs of $23 billion in the first quarter of 2007.  Ouch.

On Tuesday, the Des Moines Business Record reported:

“Switzerland-based UBS AG reported today that it expects write-downs of about $19 billion and that it would post a $12.1 billion first-quarter loss. Deutsche Bank AG, Germany’s largest bank, said it expects first-quarter write-downs of $4 billion as a result of challenging market conditions related to the subprime collapse.

UBS’s write-downs have reached $40 billion in nine months, the largest reported by any bank so far. As part of its announcement today, the bank said Chairman Marcel Ospel would resign and it would seek $15.1 billion in new capital through a rights issue that would be fully underwritten by four leading international banks.

USB also plans to create a new unit to “hold certain currently illiquid U.S. real estate assets.” It has reduced exposure to U.S. subprime-mortgage-related positions to around $15 billion from $27.6 billion on Dec. 31 and expects an undisclosed number of job cuts and a further tightening of risk to reduce exposure even more.

Meanwhile, Deutsche Bank said its exposure to the subprime crisis might have been greater than previously announced, with possible losses in some lending divisions”

I think this is a small example of how big of an effect the mortgage market has on not only our countries economy, but the world.  Crazy stuff.  Seriously, tons of investment firms/banks put their money in these securities.