UBS (NYSE: UBS) is the latest big bank claimed by the subprime mortgage fiasco. It will write-down $10 billion in assets. It is also bringing in an investment of $11.5 billion, lead by the government of Singapore.

According to Bloomberg , "UBS scrapped a forecast for a fourth-quarter profit and may post a full-year loss."

"The industry has been moving to more aggressive markdown rates'' on subprime-related assets, Kinner Lakhani, a London- based analyst at ABN Amro told the news service.

The news raises two questions. The first is whether the action by UBS will precede more write-downs at big US banks, probably in the fourth quarter. It is certainly a sign that the values of subprime assets are not better than they were at the end of the last quarter. And they may be getting worse.

The other, more vexing question is at what point will investments from Asia and Middle Eastern interests, flush with cash, become at cross purposes with banking interests? Obviously, US financial authorities would not allow a fund controlled by the Singapore government to own a big US bank outright. But in a crisis, that may mean that the US government would have to step up with capital of its own.

Douglas A. McIntyre is an editor at 247wallst.com.