UBS, the Swiss banking giant that sought help from the nation's central bank last year, said Tuesday that it lost 8.1 billion Swiss francs, or $6.9 billion, in the fourth quarter as it continued to write down the value of some debt assets and wealth management clients withdrew funds, the International Herald Tribune reported. The loss, which was bigger than some analysts expected, compares with a loss of 13 billion francs in the fourth quarter of 2007 and a profit in the third quarter of last year.

European countries still deal with insolvent firms far more harshly than America does, and most such firms end up in liquidation, a recent Economist analysis found. They often treat creditors badly too, meaning that neither side ends up satisfied. Observers worry that Europe will cope with the coming flood of defaults far less effectively than America, meaning a slower recovery. In recent years several European countries have tried to change their systems so that companies have a better chance of survival.