According to UBS chief executive officer, Sergio Ermotti, shareholders’ suggestions calling for a separation of the lender’s investment bank and wealth units are being considered seriously.
A day after investor Knight Vinke Asset Management LLC called for a spinoff of the lender’s investment bank, Ermotti said the inputs and suggestions of "every shareholder" is "always very carefully" considered.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
"Yesterday was a good opportunity for all our shareholders to come to the AGM and voice their opinions," Ermotti told Bloomberg News.
According to Knight Vinke AM, the merits of keeping UBS’ investment bank "under the same roof as the wealth management and Swiss banking businesses" would pose a "serious threat" as investment banking "is a very risky business".
In 2011, there was a loss of US$2.3 billion from unauthorised trading at the unit, which led to the exit of former CEO Oswald Gruebel, three years after the bank received a government bailout to ward off a collapse.
In 2012, Ermotti announced plans to eliminate 10,000 jobs and exit most debt-trading businesses to concentrate on money management and boost profitability.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataErmotti further told Bloomber News, "Clearly our shareholders understand that we’re fixing past mistakes in a critical and constructive way, but the firm also needs to look forward."
