UBS CEO Says Bank Is No Longer At The Very Bottom - Report
By Daniel at 13 April, 2008, 8:45 am
ZURICH (Dow Jones)–UBS AG (UBS) is no longer at the very bottom, and is strong
enough to manage its risks and positions, Chief Executive Marcel Rohner said
Sunday in a newspaper interview.
“There are certain factors, such as the U.S. real estate market, which we can’t
influence. There we will see volatility,” Rohner told Swiss weekly
Sonntagszeitung.
But the bank is strong enough to deal with this and wants to focus on rebuilding
the trust of its clients, he added. UBS is among the worst-hit banks worldwide by
the credit crunch, and has announced big job cuts - among other measures - to
restore profitability.
Rohner declined to say how many jobs UBS plans to cut, saying the exact numbers
will be released in May, when the bank will report first-quarter earnings.
He did say, however, that suggestions that up to 4,000 jobs will be cut at the
investment-banking unit alone are aiming too high. Jobs will be cut across the
investment banking unit.
It is clear, though, that the fixed-income business - whose bankers entered the
subprime mortgage positions that have caused the bank huge losses - will be
affected most, Rohner said.
At other units - wealth and asset management - the number of staff will also drop
because UBS no longer plans to fill all vacancies when people leave the bank, he
added.
Newspaper Web site: http://www.sonntagszeitung.ch
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