Thursday, November 8

Restructuring fired Swiss Bank to 10,000

Swiss Bank UBS unveiled plans on Tuesday, fire, wind to below the fixed-income business, returning to his private banks roots what it strict capital rules that impeded adapts to a profit of the trade to make, and 10,000 employees.

Zurich UBS focuses on asset management and a smaller investment bank ditching much of the trading operations, which ran until $50 billion losses in the financial crisis.

Some UBS employees took their frustration air social media, after dozens of retailers, from entering the Bank of London were stopped offices on Tuesday.

Some employees surfaced to find their employees cards no longer worked at the hub and were then to the human resources department, escorted, to work according to various sources within the Bank.

Once in human resources, they received their leave again to their redundancy package pick up personal items in a bag with a letter that she two weeks would have paid according to which they were, who sources said.

Scouring their brusque treatment by Swiss Bank revived several tweeters "U have raised were dismissed, the zirkulierten 1998 to the Bank an invented acronym for UBS hundreds employees after the merger of two Swiss banks formed today's UBS."

Chief Executive Officer Sergio Ermotti, one former Merrill Lynch and UniCredit banker, who took over after the affair Adoboli leads the three year overhaul, storing of 3.4 billion Swiss francs ($3.6 billion), which aimed to cuts of 2 billion Swiss francs.

Former investment banking co-head who will lead Carsten Kengeter, the isolation and the destruction of its fixed income activities, which are not more profitably introduced by stringent rules of riskier companies after the financial crisis.

The remaining investment bank - dealing with equities, Forex trading, corporate advice and precious metal will trade - by Andrea Orcel, hire safe Ermotti recent of America run by the Bank, the device with Kengeter until Tuesday co-ran.

"This decision was hard, but it is necessary to create a UBS that is fit for the future," Ermotti said. "The business model that we create is unique in the banking industry."

The measures for a reduction of 15 per cent staff translate, under the UBS total personnel to 54,000, from 63.745 now, down from a 2007 peak of 83.500 as banks shed have tens of thousands of jobs worldwide since the financial crisis 2008.

The job cuts 2,000 front be Office Investment Bank staff, the revenue generators. Cuts in support staff which will bring layoffs of 5,000 in the securities unit alone, said Ermotti in Zurich.

About 2,500 positions in the Switzerland, slightly more than the United States and the rest in the UK will go Ermotti said.

UBS count a smaller Investment Bank focused on its private bank, which handles the Affairs of the rich. With 1.6 trillion franc fortune, it is the second largest operation of its kind in the world after Bank of America.

UBS shares, which rose by 7.3 percent on Monday in anticipation of the announcement increased a further 4.3 percent to 13.69 Swiss francs from 1256 GMT in exceptionally heavy trading, their highest level since July 2011, compared with a rise of 0.7 percent for the European Bank sector index.

"This is a transformational change for UBS, which wanted to happen investors for a long time," said Kepler capital markets analyst Dirk Becker. "Upon completion, this job cuts UBS is an attractive investment case, but we nevertheless believe that the execution risk should not be underestimated."

UBS, a rescue by the Government in 2008 to more than 50 billion $ held mortgage losses, is effectively to admit crack on the failure of the attempt which started Big League fixed income ten years ago by the former Chairman Marcel Ospel.

The Bank suffered a $2.3-billion hit last year blame the dealer Kweku Adoboli, now court due to fraud and accounting fraud.

Deutsche Bank said on Tuesday it hopes by the UBS cuts benefit, since the Investment Bank third quarter record sales and trading revenue delivered.

Credit Suisse said last week that it was more cost, cut its profit and capital boost, but not the same kind of radical restructuring as UBS announce.

The overhaul represents a retreat on strengths in the Advisory as a result of the UBS acquisition of Warburg, a British Merchant Bank, 1995.

The Bank is supposed to pay a modest 0.10 Swiss francs per share from more than 50 percent of the profits to the shareholders by 2015 after dividend its first crisis last year. It means has deposited in the third quarter for a undetermined dividend this year, Tom Naratil said journalists financial Chief.

The cost for that investment banking will share also lead to a loss in the fourth quarter and fiscal year, when together with charges on the debt you the Bank UBS said:.

The private bank is also challenges, with a profit of fall as push-to tax on the undeclared assets in offshore accounts draw Swiss banking secrecy as foreign governments weakened is.

However, the unit secured 7.7 billion Swiss francs in net new money from clients in the third quarter, the highest score in a third quarter - usually a slowly for the business due to summer vacation - represents over five years.

Vontobel analyst Teresa Nielsen said that the focus on asset management, which should increase company is considered safer as UBS clients and an attractive employer for their consultants.

"We expect to continue increasing strength show UBS asset management, as its reputation continues to improve, take potentially even market shares of Credit Suisse, Julius Baer and other competitors," she said.

UBS loss swung quarter 2,172 billion Swiss francs, hit by restructuring charges and 863 million francs, which depreciated the value of their own debt. Analysts in a Reuters poll had forecast a net profit of 457 million francs.

UBS seeks end of 2017, of 301 billion currently to reduce risk-weighted assets to under 200 billion Swiss francs. This will be the investment bank about 70 billion francs, less than half of what he makes for today.

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