After UBS announced their first quarterly loss since 1998, the bank has announced that new Chief Executive Marcel Rohner is to replace Huw Jenkins as Investment Bank Chairman.
In other changes to the management structure, Chief Financial Officer Clive Standish has retired and is to be replaced by Marco Suter, the current Vice-Chairman. Robert Wolf is to become President of the Investment Bank, with Walter Stuerzinger replacing him as Chief Operating Officer. Elsewhere in the company, staff numbers are expected to decrease by 1,500 as a result of the third-quarterly negative net revenues.
As a result of UBS’s third-quarterly losses of $510-680m, the bank has written down its fixed-income portfolio by $3.4bn. Rohner reported a $1.8bn reduction by the bank in the value of structured products on its balance sheet, whilst its portfolio of residential mortgage-backed securities has been reduced by $1bn.
The losses were predominantly due to US subprime mortgage-related securities, though the closure in May of UBS’s in-house hedge fund, the Dillon Read Capital Management fund, also had a part to play in the losses.
The bank’s losses exceed those of its rivals, with UBS shares in Zurich down 2.7% at SFr59.90, whereas its rivals’ shares typically 1-2% lower.
Rohner Replaces Jenkins as UBS Investment Bank Chairman
Rohner Replaces Jenkins as UBS Investment Bank Chairman
Mon, 01 Oct 2007
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