NEW YORK — Paine Webber Group Inc. said Thursday that it will post a 1990 loss of about $55 million, the latest indication of the recession sweeping Wall Street.
Paine Webber said it would lose $95 million in the last three months of the year, when it took a $24-million charge against earnings to pay for severance and space costs associated with 400 layoffs.
The firm also said it increased its reserves for merchant banking investments by $71 million in the quarter. Such deals, in which firms invest their own money until a client can pay back debt, have been a major source of Wall Street troubles.
Paine Webber Chairman Donald B. Marron said in a letter to the firm's officers and investment executives that the financial changes "while painful in the short term, have a very positive impact on the firm's financial condition going forward."