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Analyst Has Zero Hope For UBS

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“They’re not going to be able to repair this bank back to pre-crisis levels,” said Simon Maughan, co-head of European equities at MF Global Ltd. in London, who has a “sell” rating on UBS. “Too much damage has been done, and the world has moved on. Gruebel needs to revise down his targets for the investment bank, as they aren’t going to meet them. The market knows they haven’t got a chance.” [Bloomberg]


Layoffs Watch '12: UBS Has Something To Share

Management has decided to burn the investment bank down and start fresh. Basically. UBS is set to unveil a radical downsizing of its struggling investment bank next week in a move that will prompt the loss of up to 10,000 jobs across the Swiss banking group. Switzerland’s largest bank by assets will significantly shrink the trading side and complexity of its investment bank and as a consequence also cut thousands of jobs in its back office over the next few years, three people close to the situation said. The job cuts will amount to almost a sixth of the bank’s workforce of 63,500 at the end of June. They will not happen all at once and the precise number is still unclear... It comes on top of another – still ongoing – programme announced last year to cut 3,500 jobs. The new strategy, hammered out in several executive board meetings in New York this week and set to be announced next Tuesday, will lead to the closure of a sizeable part of UBS’s fixed-income trading operations and other capital-intensive areas of the investment bank. UBS To Cut Up To 10,000 Jobs [FT] Related: UBS’s Investment Banking Head May Have To Slash His Own Expenses “Like A Jewish Shopkeeper”