UBS boss Gruebel seeks overhaul of investment banking unit

UBS Chief Executive Oswald Gruebel will pursue an overhaul of investment banking at a meeting with the board in Singapore, after unauthorized trading caused a $2.3 billion loss.

 

The UBS board meets in Singapore on Wednesday and Thursday for one of the four regular meetings it holds every year and strategic changes to the investment bank are on the agenda, said several sources with direct knowledge of the plans.

The bank's biggest shareholder, Singapore-based sovereign wealth fund GIC, said it had discussed the alleged fraud with UBS management, adding it was disappointed by the case and urged UBS to take "firm" action to restore confidence.

GIC, which has a 6.4 percent stake in UBS and has lost about 77 percent of its 11 billion Swiss franc investment in the bank, said it had sought details on how UBS was tightening controls.

Gruebel said he would "bear the consequences" of the $2.3 billion trading loss that was discovered last week but did not want to quit, adding the affair would influence the future strategy of the investment bank.

 

UBS is under pressure to scale down, ringfence or even split off its risky investment banking business from its core wealth management unit in order to shield private clients.

But the top executive and another source at the bank said it would be "business as usual" at meeting and the board would not be rushed into dumping the investment bank.

"The investment bank is critical to our strategy. Anyone that thinks you can run a wealth management model without an investment bank doesn't know the industry," said the top executive.

Thd full story is available at Reuters.

Bagaimana perkembangan perubahan fokus manajemen kekayaan bank?

Seorang analis mengatakan, "Ada hingga $25 miliar dalam biaya yang bisa didapat di Asia, tetapi ini pasar yang sulit.

Aplikasi blu oleh Group BCA memperluas ekosistem digital melalui BaaS

Strategi tersebut telah berhasil meningkatkan transaksi dan membangun kepercayaan nasabah sebesar 53,4% sepanjang 2023.

Christine Ip dari UOB merenungkan karir perbankan tiga dekadenya dan kembali ke dunia seni

Dia percaya bahwa keuangan dan kreativitas saling berkaitan dalam membangun kolaborasi talenta yang holistik di UOB.

Shally Koh dari Citi berbicara tentang bagaimana mendorong perbankan yang lebih beragam

Bank tersebut memperkenalkan program keterlibatan pria dan dukungan ibu sebagai bagian dari upayanya untuk kesetaraan gender.

Maisie Chong dari StanChart berbicara tentang tidak pernah menolak peluang dan melangkah maju

Chong berbagi tentang menemukan kepuasan dan pemenuhan diri melalui perjalanan kerja.

Mayda Lim dari OCBC dalam membangun pipeline talenta di bidang teknologi dan perbankan

Lim menggabungkan kebutuhan untuk mendukung bankir perempuan dengan kekurangan talenta dalam industri tersebut.

Aturan baru batasan harga mendorong lebih banyak penggabungan P2P di Indonesia

Regulasi ini akan meningkatkan biaya kepatuhan, namun batasan harga akan membuat sulit untuk mengimbanginya.

Deputi Gubernur: Pembiayaan Islam di Indonesia akan berkembang sebesar 10% -12% pada 2024

Ekonomi dan keuangan syariah Indonesia mempertahankan pertumbuhan positif pada 2023.

Bagaimana HomePay memerangi penipuan renovasi di Singapura

Uang ditempatkan dalam rekening escrow dan disalurkan saat pencapaian tahap-tahap tertentu.