22 November, 2011

UBS announced a restructuring

The largest (by assets) bank UBS AG of Switzerland has long been anticipated, presented a plan to restructure its investment division. It will be cut in half and shifted to service the super-rich clients.

Submitted by UBS CEO Sergio Ermotti plan to reform the largest bank in Switzerland, actually puts an end to undertaken in the last five years trying to turn a financial institution in the investment banking world level. Moreover, these plans are now in a bank are treated as a serious mistake. "We're going back to the mid-1990s - said Mr. Ermotti, speaking in New York for the presentation of new plans for the bank .- The boom in investbankinge observed the last ten years, was an anomaly." According to the director UBS, in the present circumstances, when the regulation became more stringent, "there is no way to maintain the current business model."

Under the new plan within five years investbankovskoe UBS unit will be reduced by half. The unit will be laid off two thousand people, and the very division will be converted so as to provide more services and more products to offer super-rich clients.

On the bank's intentions to reform its investbankovskogo division has long been known. Division, which over the past four years, only a year and make a profit and which accounts for more than half of the bank's capital, brought only 26% of the total income of the bank to pay taxes. After September the bank reported a loss of $ 2.3 billion for the operations of one of its traders in London and then CEO Oswald Grübel was forced to resign, the new leadership headed by Mr. Ermotti decided to accelerate plans to reform.

As seen from the new plans, the bank would like to see him investpodrazdelenie offer their products and services to customers of its management unit by private finance. This unit before the financial crisis was the largest in the world, but his position had been undermined by the actions of the U.S. tax authorities who accused him in that it helped clients evade U.S. taxes.

Experts note that a similar scheme collaboration investpodrazdeleniya branch and private banking already applies in his work another Swiss bank - Credit Suisse.

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