The Swiss giant of the banking industry, UBS, announced losses of $3.4 billion, made changes in management, and eliminated numerous jobs under the impact of the consequences of the credit market crisis, it was announced on Monday from the world’s largest wealth management bank for affluent individuals.
UBS announced a write-down of approximately four billion Swiss francs ($3.42 billion) due to losses in its fixed income portfolio and elsewhere, resulting in a business loss in the third quarter of 600-800 million Swiss francs. This marks the bank’s first quarterly loss in nine years. In its investment bank, UBS announced the elimination of 1,500 jobs. The head of the investment bank, Huw Jenkins, who oversaw a rapid expansion in the bank’s efforts to rank among the top five investment banks in the world, will leave the bank.
The group’s Chief Financial Officer Clive Standish Marcel Rohner, who was appointed CEO of the company in July following the unexpected departure of leader Peter Wuffli due to losses in hedge funds, will take control of the investment bank. Risk management expert Marco Suter will become the Chief Financial Officer. Investors are increasingly concerned that a growing number of banks may announce losses related to the credit crisis when finalizing business results in a turbulent third quarter. Unyielding concerns about the health of the banking system are pressuring financial markets worldwide. (H)
