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UBS Will No Longer Slash Expenses "Like A Jewish Shopkeeper"***

Carsten Kengeter, who finds inspiration in interesting places, has been replaced by Bear Stearns alum Sam Molinaro.
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Carsten Kengeter, who finds inspiration in interesting places, has left the building (and been replaced by a Bear Stearns alum).

Dear Colleagues,

Following the successful transfer of our Non-Core portfolio assets into the Corporate Center earlier this year, Carsten Kengeter will be leaving UBS after a short transition. He will continue to provide advice to UBS on the wind-down of the Non-Core portfolio over the coming months.

I want to thank Carsten for his many contributions to UBS during his four years with UBS, including his three years as CEO of the Investment Bank, and I wish him the best for his future endeavors.

I am pleased to announce that Sam Molinaro will take on the role of head of Non-Core and Legacy Portfolio, with immediate effect, reporting directly to me. Sam joined UBS in March 2012 as COO of the Investment Bank and was most recently COO of Non-Core and legacy portfolio.

Sam brings extensive industry experience from his time at Bear Stearns where he was CFO and then COO. Before joining UBS he worked on several advisory roles and was CEO and Chairman of Braver Stern Securities. He was instrumental in the set-up and transfer of the Non-Core unit at UBS and I am confident that, with his appointment, we will continue the effective execution of our strategy in this area.

Please join me in congratulating Sam and wishing him every success in his new role.

Sergio P. Ermotti

Related: Was That Wrong? Should Carsten Kengeter Not Have Done That?
***Earlier today I received a call from Simon Wiesenthal asking me to clarify whether or not I condoned Carsten Kengeter's anti-Semitic comment. Pretty sure that the fact that I've written that Carsten likely spends his money on limited editions of Mein Kampf, and otherwise relentlessly mocked him for the "Jewish shopkeepers" statement since he made it, suggests that I do not condone what he said but to be clear: I do not! Thanks and have a great day.


UBS's Investment Banking Head May Have To Slash His Own Expenses "Like A Jewish Shopkeeper"

As those of you keeping up with the many trials and travails of UBS know, the last couple years have been fairly brutal for investment banking chief Carsten Kengeter. Pre-tax IBD profit was down 55 percent YoY through June, employees are constantly on his ass about getting paid, the comments he made in attempt to "rally the troops" re: "slashing expenses like a Jewish shopkeeper" were totally taken in the wrong way, some guy perpetrated a $2 billion fraud (which was partially to blame for CK getting passed over for the promotion he was gunning for), and to top it all off, the higher-ups actually accepted his offer to forgo a bonus for 2011, which he would never have put out there if he thought they'd actually go for it. And now, as a thanks for all his hard work, management is publicly mulling the idea of lightening his load and paycheck. UBS is weighing a shakeup at the top of its investment bank that would give a reduced role to Carsten Kengeter and increased responsibilities to his co-head Andrea Orcel, three people with knowledge of the matter said. The board is meeting in New York today to consider a reorganization of the unit that will include cuts centered on the fixed-income operations that Kengeter has been responsible for since 2008, said the people, who asked not to be identified before the matter is made public. An announcement may come when UBS reports third-quarter earnings on Oct. 30, they said...Three senior executives who declined to speak publicly said they expect Kengeter to leave the bank before long. A person with knowledge of Kengeter’s thinking said he doesn’t plan to go. A UBS official declined to comment. Ermotti told staff in a memo this month he’ll take “all actions necessary” to tackle the “paradigm shift” in banking and will continue “remodeling” UBS. He said in July that the market environment has completely changed since the bank announced reorganization plans for the securities unit in November. UBS May Reduce Kengeter Role in Overhaul of Investment Bank Unit [Bloomberg] Related: Was That Wrong? Should Carsten Kengeter Not Have Done That?