Swiss bank becomes major victim of subprime crisis
Switzerland’s leading UBS bank was the latest victim of the US subprime market, announcing losses of 4 billion Swiss francs ($3.4 billion) in a statement Monday.
It said it would undergo major restructuring with the loss of 1,500 jobs before the end of the year in its investment bank. There would also be a management shake-up, it added. The bank predicted pre-tax losses of between 600 and 800 million Swiss francs for the Q3. Experts claim it as one of the biggest casualties so far of the international money market crisis. The head of the investment bank, Huw Jenkins, is to step aside to become senior advisor to Marcel Rohner.
Rohner, who was named chief executive in July after the sudden departure of CEO Peter Wuffli due to hedge fund losses, will assume control of the investment bank. UBS chief financial officer Clive Standish is to retire. (m&c.com)
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