Saturday, September 24, 2011

UBS Head Quits

The CEO of the troubled Swiss bank UBS, Oswald Gruebel, has resigned following the alleged losses of $2.3 billion in an alleged insider rogue trader incident.

According to the Reuters report on the sudden resignation, linked here:

The board reconfirmed the bank's "integrated" strategy, combining wealth management, investment bank, asset management and Swiss retail and corporate businesses, but said it wanted to speed up a restructuring of investment banking.
The board said it had asked management to accelerate the implementation of a client-centric strategy for the investment bank "concentrating on advisory, capital >markets, and client flow and solutions businesses."
"In the future, the Investment Bank will be less complex, carry less risk and use less capital to produce reliable returns and contribute more optimally to UBS's overall objectives," Villiger said.

UBS had already said in August it would axe 3,500 more jobs to shave 2 billion Swiss francs off annual costs, with almost half of those cuts coming from the investment bank, which had grown to almost 18,000 staff from 16,500 a year ago.



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