After activist investor Knight Vinke Asset Management demanded a review of the UBS’s structure at an investor meeting on 2 May 2013, the Swiss bank has faced a renewed call to break up its investment banking operations and wealth management division.
According to New York based Knight Vinke, that owns less than 1% of UBS, this decision to break up the businesses will allow each sector to "achieve its potential".
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Knight Vinke board member Eric Knight said in an open letter: "Investment banking is a very risky business and these risks pose a serious threat to UBS’ Wealth Management and Swiss Banking franchises.
"This is a discussion that is best had when all the businesses are doing well – as is the case today – and the Board needs to be encouraged to act quickly and decisively so as not to lose the opportunity."
Alongside the break-up call, executive pay at banks is also another important topic that is prompting changes at a number of European banks, including UBS.
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