The true extent and impact of losses associated with the sub-prime crisis are now beginning to emerge for the forst time.  UBS are cutting 1,500 positions to recoup $3.4Bn in losses, and Citi coming in at $1.3Bn.

BBC NEWS | Business | Banks detail US mortgage losses

Swiss bank UBS was worst hit, forced to write down 4bn Swiss francs ($3.4bn; £1.67bn) of losses due to its exposure to US sub-prime bad debt.

UBS said it would now cut 1,500 jobs and make extensive management changes.

US giant Citigroup said its sub-prime losses would total $1.3bn, in addition to $2.6bn of extra credit costs

In Canada, the commercial paper market has been under an odd truce until October 15th.  That truce saw $35 Bn in commercial paper frozen to permit the issuers to establish the real value.  Its a safe bet that value will be less than $35Bn.  It was rumoured earlier that CIBC have the largest participation in sub-prime, but given the above news about UBS, I think we must wait till later this month to get a better idea.  In addition, any write down now, will likely require more write-downs later, as the mortgage terms resets (and associated new defaults)  peak in October 2007, and continue at a hectic pace for many more months.

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