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UBS Mushrooms Investment Bankers?

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A tipster hints that UBS, having now effectively gelded Investment Banking compensation but has not done much to the other units, in particular, Wealth Management. The story goes that UBS has been escrowing IB bonuses for some time, since they only pay once a year, and that while many of these are contractually guaranteed, a long sitskrieg between the Swiss monster and its employees, who are unlikely to quit until paid, has begun. UBS is sort of stuck in a political bind. Paying bonuses would be politically explosive (the Swiss National Bank is shareholder) but they are contractually committed to do so. Ouch.
One would think that UBS would just sell the Investment Bank if they wanted to be rid of it, but given the market, that might not be a viable alternative. So is it better to let the IB wither of its own accord?
At the same time, we are told, but cannot confirm, that UBS is on a Wealth Management hiring spree. This would make some sense, given the degree to which this unit has grown, and the fact that, certain tax evasion indiscretions that we pretty much expect of the Swiss aside, it has mostly kept its nose clean. It would, however, seem to conflict with the public appearance that the bank is suffering. Perhaps it would be better to say the investment bank, now quarantined like an Ebola patient, is suffering?
What the hell is going on over there at UBS anyway?


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