Oswald Greubel may be forced to shrink the investment bank after the $2.3b loss from fraudulent trading last week, according to Bloomberg’s report.
The CEO got a scolding yesterday from the Government of Singapore Investment Corp., the company’s biggest investor, which “expressed disappointment and concern about the lapses and urged UBS to take firm action to restore confidence in the bank,” according to a statement from the sovereign wealth fund after its senior management met with Gruebel.
“This is a black eye for Gruebel and the bank,” said Christian Hamann, an analyst at Hamburger Sparkasse who has a “hold” rating on UBS. “On the other hand, he’s done quite a few things well and successfully stabilized the bank, which may have earned him some credit that he hasn’t used up yet.”
Gruebel was unavailable for comment.
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