September 26th, 2011
Econintersect: On Friday the UBS Board of Directors gave CEO Oswald Grübel a unanimous vote of approval and urged him to stay on to address the future of the bank in the wake of the $2.3 billion rogue trader scandal that became public knowledge ten days ago. One day later Grübel resigned, releasing a statement that he was convinced it was in the best interests of UBS to approach the future with a new leader. What happen?
Follow up:According to the Financial Times, insiders have revealed that the board declined to grant Grübel two key demands:
- The bank should continue as a universal bank and be reorganized to his design with wealth management, asset management and investment banking under one roof.
- The board should be overhauled and Axel Weber, scheduled to become chairman in another 18 months, put on the board next April.
Weber is the former Bundesbank (Germany's central bank) president.
The Swiss government appears to be considering asking UBS to separate private banking and investment banking operations.
Read more details at the Financial Times (link below).
Source: Financial Times