UBS AG the Swiss investment bank known for catering to the world's wealthiest investors saw those investors fleeing and pulling out nearly $40 billion after UBS reported $19 billion in writedowns in the first quarter.

With three consecutive quarterly losses, UBS is expecting even more writedowns and as a result more client withdrawals according to Bloomberg news.

JPMorgan analysts increased their estimates for this year's per-share loss at UBS to 4.55 francs from 3.33 francs. Clients of UBS's wealth management international and Switzerland unit will probably pull a net 13.5 billion francs this year, after adding 125.1 billion francs in 2007, the analysts said.

The beneficiary of UBS's woes are their hometown rivals Credit Suisse Group which JPMorgan analysts predict will add 13.5 billion swiss francs in new client money.