UBS Kicked Off General Motors IPO


If you've seen the latest General Motors S-1, you might have noticed that UBS is not listed as part of the syndicate anymore, although they were part of the team as recently as October 29. Why might that be? Glad you asked!

We're told that a senior high yield analyst at UBS sent out a note last night to a bunch of clients that included his musings on the valuation. This of course would constitute a big no no with regard to the firm's obligation to stay quiet, in addition to the fact that the info may be at odds with the unified valuation information that will be published by the syndicate. So the bank was promptly kicked off the IPO as a bookrunner. At this point it's apparently unclear whether the Swiss will be tearing the analyst a new one, or those in compliance who let the report go through. We're also told UBS is planning on spinning the story as it being their decision to withdraw from the deal (nobody puts UBS in a corner).


Bonus Watch '13: UBS

The Swiss bank will reportedly announce today that it's going to be doing things a little differently around here re: compensation. One, deferrals will start at $250,000 and two, rather than being paid in UBS stock, the non-cash portion of 6,500 senior employees' bonuses will come in the form of subordinated debt that can and will be wiped out in the event the amount of capital on hand falls below the level required by EU regulators, putting the onus on everyone to make sure no one pulls an Adoboli and avoids multi-billion dollar fuck-ups in general.