UBS Cuts Its Investment Bank Arm Off to Survive Crisis
UBS AG Chief Executive Officer Marcel Rohner confirmed analysts’ fears today that UBS, the largest Swiss bank will put its investment banking business on a much tighter leash. UBS will ‘no longer aim to offer everything to everyone in investment banking” Rohner told investors at the annual shareholder meeting in Basel today.
UBS has about $3 trillion assets under management, making it not on Switzerlands’ biggest bank, but also the world’s largest wealth management company. But losses of almost $37.5 billion since July have long exceeded the $32 billion earned by the division in the past 10 years.
UBS shares have lost 55% of their value over the last 12 months. The bank eliminated 1,500 jobs at the end of 2007 and may well cut another 2,500 or 11% of the employee force in the investment banking division.