Oswald Gruber, CEO of UBS, seeks to make changes in the top managerial ranks of the troubled bank’s brokerage business in the US, after deciding against a sale – reported Financial Times.
The Swiss bank’s private banking and wealth management divisions in the US have been facing tough time, after the US Justice Department and Internal Revenue Service (IRS) found that the bank had helped 19,000 wealthy American citizens to hoard $20 billion worth taxable income.
Furthermore, the performance of its wealth management division has taken a beating during the ongoing global financial turmoil, as several private banking clients have pulled out their funds.
Mr. Gruber, a former CEO of Credit Suisse, after taking over the reins of the Swiss bank, initially planned to offload the wealth management business and even held unsuccessful talks with Morgan Stanley, last year. However, he has now decided to persist with the business for the time being, and fix and expand the brokerage business in the US by appointing a new leader.
