News

UBS Chairman: Other Banks Will Have To Fire Thousands Of Employees Too, Y’Know

Difference is, UBS is the only one that’s faced facts already, ’cause they’re consistently ahead of the curve like that. Credit Suisse, Deutsche Bank, all those other guys will get a cold hard dose of reality sooner or later, though, and when they do they’ll say, “Damn! UBS was all over this! We’re not worthy!”

A day after UBS AG announced it was cutting up to 10,000 jobs by 2015, UBS chairman Axel Weber is warning that many of the Swiss banking giant’s rivals may have to follow suit…“I suspect that many banks have not yet really understood what the consequences of the new capital rules for business will be when they come into full effect in 2019,” Weber was quoted as saying in Wednesday’s edition of the German daily Handelsblatt. “We, on the other hand, see this new world very clearly,” he said. “Besides that, Swiss rules commit us to even higher own capital demands than the 10 percent capital quota that Basel III orders.”

UBS Chief: Other Banks May Need To Downsize Too [AP]
Earlier: Layoffs Watch ’12: UBS Tells Employees Not To Bother Themselves With Figuring Out How To Get Into Work (Ever Again)

42 comments
(hidden for your protection)
Show all comments

42 Responses to “UBS Chairman: Other Banks Will Have To Fire Thousands Of Employees Too, Y’Know”

  1. Hobbes says:

    Right, because UBS was totally ahead of the curve on their attempt to build a world-class investment bank.

  2. Axel Weber says:

    "There vill be NO autonomy."

    FX desks remember how Axel rolls.

  3. Stan O says:

    "…finalizing the plans essential to implementing the Investment Bank’s client-centric strategy…"

    She gone!

  4. Dan says:

    Credit Suisse's investment bank is leap and bound ahead of UBeSucking. Just give your Stamford office to CostCo. already. Maybe they'd be able to make more money out of high school educated students than all those 10,000 IVY league staff combined.

    • Jerker's ghost says:

      Alas the market doesn't agree with you. UBS shares have outperformed CS by 50%+ since 2009
      UBS sucks but less so than CS. The powers that be in Switzerland will cut CS down next

      • Madea of UBS says:

        You are right. $60 billion bailout, $2.2 billion trader loss, $350 million facebook loss. The numbers do add up.

        • Jerker's ghost says:

          And yet as a shareholder you'd of made a better return investing in UBS ! Sack all of UBS+CS & there's a pot of gold !

          • Guest says:

            'til it goes poof over night ala Lehman

          • French Guest says:

            A la Lehman.

            Ala derives from French "à la", a spoken contraction of "à la manière de", literally "in the fashion of" or "in the manner of".

            In other words, you got it wrong.

            Thanks for listening.

            -The same French guest who's still enjoying weighing in.

          • AnnOff says:

            va te faire foutre monsieur. Enjoy weighting in on this!.

            –Non French Guest that knows how to use Google

          • French Guest says:

            If you use Monsieur you would not use "tu" (here: "te") but "vous", otherwise it makes your syntax incoherent.

            – French guest who, once again, enjoyed weighing in.

            PS: fuck you too.

          • AnnOff says:

            Ok, vous te faire foutre monsieur. Does that sound better ?

            –Non French Guest that likes to learn

          • Lefkogia says:

            Δε γαμιέστε και οι δυο λέω γω ;

            –Cretan guest who thought that this contribution was as valuable as the others above

          • latamguy says:

            Bueno, las naranjas no se van a recoger solas

            – Latam guest who migth be slightly off-topic

      • Just sayin says:

        CS stock outperformed UBS by 10%+ over another arbitrary time horizon.

        Alas it's odd to cite share price performance when comparing the two investment banks (divisions). Look at something relevant like league tables or share of wallet (CS dominates).

  5. Jerker's ghost says:

    Stock up 17+% on sacking 10K, maximize shareholder value & sack the remaining 55K

  6. Guest says:

    There's a bank on my Axel.

  7. Bob Zuccaro says:

    But what about the fact the Dow will be at 30,000 by 2019?

  8. Quant me maybe says:

    Watching this whole thing play out looks like what getting a vesctomy without anesthetic must feel like.

  9. Joey says:

    Guess you failed second grade spelling.

  10. guest says:

    He's right actually, but for the wrong reasons. Capital rules may cause big banks to shrink a little, but the no-end-in-sight contraction in M&A and trading volumes will make it way, way worse.

  11. Linda says:

    Greatest irony is that the smaller the industry gets, the less traffic this schadenfreude blog gets!

  12. Guest says:

    Looks like this "German economist, professor and banker" (http://en.wikipedia.org/wiki/Axel_A._Weber) schmuck Weber sees the world too clearly.. Who is going to trade bonds in 2019, ukrainian pawn shops?

  13. Mr. Putin says:

    Looks like this "German economist, professor and banker" (http://en.wikipedia.org/wiki/Axel_A._Weber) schmuck Weber sees the world too clearly.. Who is going to trade bonds in 2019, ukrainian pawn shops?

  14. Confused guest says:

    Since when did sacking people address the stringency of Basle 3 capital adequacy ? Am I missing something, but shouldn't there be a defined plan to build revenues ?

  15. Elliot Spitzer says:

    Higher capital, lower return on equity. if business line ROE doesn't clear the hurdle for aggregate ROE goals, gonzo alonzo.

    I feel so dirty.

  16. guest says:

    But, where are all the customers yachts? In a tree in my back yard!

  17. Empathetic says:

    Sorry to employees let go, but better to leave a melting ice cube…(melting ice cube = the shitshow that is UBS)

Our Sites

  • Above the Law
  • How Appealing
  • ATL Redline
  • Breaking Defense
  • Breaking Energy
  • Breaking Gov
  • Dealbreaker
  • Fashonista
  •