UBS won't comment on possible job cuts
UBS declined to comment today on a report by news agency Bloomberg that the Swiss bank plans to eliminate around 1,900 jobs in its investment banking, equities and fixed-income units.
"We don't comment on rumors," a spokesman for the bank said.
The agency quoted two persons familiar with the plan and said UBS may announce the cuts at its extraordinary general meeting Thursday.
At the EGM, shareholders will vote on the appointment of four new members to the board of directors.
The new appointees will strengthen banking and financial markets expertise on the board, a lack of which has been heavily criticized by investors and was seen as one reason why the Zurich-based bank was hit badly hit by the meltdown of the market for risky home loans in the US.
Approval of all four nominees is expected.
Traders and investors are also hoping that the bank will provide an update on business in the third quarter, which just ended, ahead of the meeting.
Analysts are starting to turn more optimistic on UBS, which had for months been the most badly hit among European banks by the financial markets crisis. But after having written down risky assets by more than $42bn (€29.9bn), further write-downs are expected to be more limited.
Estimates for third-quarter writedowns range between Sfr3bn to Sfr5bn (€3.1bn), which will probably still lead to a loss, but one that the bank can absorb without jeopardizing its capital strength.
UBS was forced to strengthen capital early on in the crisis, which allowed it to do so at relatively favorable terms.
This enables it to now benefit from its relative strength and its status as a universal banks, which leaves it less exposed to liquidity strains. The Swiss bank also has a large wealth management business, which continues to generate fees, and a strong retail franchise in its Swiss home market.
-By Anita Greil, Dow Jones Newswires; +41 43 443 8044 ; anita.greil@dowjones.com
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