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UBS rips up bank structure as rich clients flee
UBS will separate its troubled investment bank from its prized wealth management arm, paving the way to sell the business that made it Europe's biggest casualty of the credit crunch.
- Agencies
- Published: 18:30 August 12, 2008
Zurich: UBS will separate its troubled investment bank from its prized wealth management arm, paving the way to sell the business that made it Europe's biggest casualty of the credit crunch.
The world's No.1 banker to the rich gave in to shareholder pressure to restructure on Tuesday, admitting there were problems keeping the two businesses integrated.
"It might be that we keep or divest or enter into joint ventures or collaboration," Chairman Peter Kurer told journalists, adding that there were no plans yet to sell parts of the business.
As peers such as Credit Suisse drew a line under the crisis, there were further reminders of the damage the investment bank has wreaked at UBS as investment writedowns climbed a further $5 billion to top $42 billion.
It haemorrhaged 44 billion Swiss francs ($41 billion) in the second quarter as investors moved their money to rivals including smaller Swiss banks.
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