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)

Comments (42)

  1. Posted by Hobbes | November 1, 2012 at 12:18 PM

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

  2. Posted by Axel Weber | November 1, 2012 at 12:22 PM

    "There vill be NO autonomy."

    FX desks remember how Axel rolls.

  3. Posted by Stan O | November 1, 2012 at 12:23 PM

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

    She gone!

  4. Posted by Dan | November 1, 2012 at 12:36 PM

    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.

  5. Posted by Jerker's ghost | November 1, 2012 at 12:44 PM

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

  6. Posted by Guest | November 1, 2012 at 12:53 PM

    There's a bank on my Axel.

  7. Posted by Bob Zuccaro | November 1, 2012 at 12:56 PM

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

  8. Posted by Jerker's ghost | November 1, 2012 at 12:57 PM

    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

  9. Posted by Quant me maybe | November 1, 2012 at 12:58 PM

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

  10. Posted by Madea of UBS | November 1, 2012 at 1:01 PM

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

  11. Posted by Jerker's ghost | November 1, 2012 at 1:06 PM

    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 !

  12. Posted by Sarcasm Quant | November 1, 2012 at 1:10 PM

    Yes, that was indeed the joke made by Bess.

  13. Posted by Guest | November 1, 2012 at 1:32 PM

    'til it goes poof over night ala Lehman

  14. Posted by guest | November 1, 2012 at 1:38 PM

    ahem, 36,000 by 1999

    - K. Hassett

  15. Posted by Mr. Brownstone | November 1, 2012 at 1:45 PM

    You have no idea how I roll.

    Mr. Rose

  16. Posted by Joey | November 1, 2012 at 1:47 PM

    Guess you failed second grade spelling.

  17. Posted by guest | November 1, 2012 at 1:56 PM

    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.

  18. Posted by guest | November 1, 2012 at 2:03 PM

    Spelling error being what, exactly?

  19. Posted by John corzine | November 1, 2012 at 2:11 PM

    They shoulda gone mid sized.

  20. Posted by French Guest | November 1, 2012 at 2:15 PM

    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.

  21. Posted by AnnOff | November 1, 2012 at 3:01 PM

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

    –Non French Guest that knows how to use Google

  22. Posted by French Guest | November 1, 2012 at 3:21 PM

    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.

  23. Posted by AnnOff | November 1, 2012 at 3:39 PM

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

    –Non French Guest that likes to learn

  24. Posted by guest | November 1, 2012 at 3:59 PM

    You're an idiot.

  25. Posted by Just sayin | November 1, 2012 at 3:59 PM

    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).

  26. Posted by guest | November 1, 2012 at 4:00 PM

    Guess you failed second grade.

  27. Posted by Linda | November 1, 2012 at 6:50 PM

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

  28. Posted by guest | November 1, 2012 at 7:00 PM

    Captain Obvious reporting for duty.

  29. Posted by Alanis Morissette | November 1, 2012 at 8:03 PM

    I do not think that word means what you think it means.

  30. Posted by Poor English | November 1, 2012 at 8:06 PM

    Pardon poor engrish.

    Ware wur you when linda commt?

    I home reed Dilbrekr.

    John ring.

    "linda commt…"

    "no."

  31. Posted by guest | November 1, 2012 at 10:21 PM

    yeah. try paying the rent in league table standings.

    congratulations on "dominating" ubs, the worst bank in the history of the world.

  32. Posted by Guest | November 2, 2012 at 12:09 AM

    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?

  33. Posted by Mr. Putin | November 2, 2012 at 12:41 AM

    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?

  34. Posted by Confused guest | November 2, 2012 at 12:45 AM

    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 ?

  35. Posted by Lefkogia | November 2, 2012 at 4:46 AM

    Δε γαμιέστε και οι δυο λέω γω ;

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

  36. Posted by Guest | November 2, 2012 at 5:30 AM

    Share price performance just shows that CS is less better than UBS now than it was 3 years ago. It doesn't measure absolute performance.

  37. Posted by guest | November 2, 2012 at 6:21 AM

    ahem

    –Yiannos Papantoniou

  38. Posted by latamguy | November 2, 2012 at 9:18 AM

    Bueno, las naranjas no se van a recoger solas

    - Latam guest who migth be slightly off-topic

  39. Posted by Elliot Spitzer | November 2, 2012 at 11:00 AM

    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.

  40. Posted by guest | November 2, 2012 at 1:04 PM

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

  41. Posted by Sausage of Doom | November 2, 2012 at 5:17 PM

    Hey!

    - Brian M.

  42. Posted by Empathetic | November 2, 2012 at 6:51 PM

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