UBS prepares ‘disciplinary action’ as more heads roll
UBS is considering shrinking down its investment bank, where the alleged incident took place
5 October 2011 Last updated at 18:28
UBS has said it is preparing to take “disciplinary action” against individuals deemed responsible for an alleged rogue trading incident.
It comes as the joint heads of the Swiss bank’s equities division, in which the incident took place, quit.
Francois Gouws and Yassine Bouhara took “responsibility for the effective management of the equities business”.
Equities trader Kweku Adoboli was last month arrested for allegedly losing $2.3bn (£1.5bn) in unauthorised trades.
The two UBS executives to fall on their swords over the incident only took up their posts last year, with Mr Bouhara having been poached from rival Deutsche Bank.
Their exit follows the departure of UBS chief executive, Oswald Gruebel, last week.
They will be replaced by Mike Stewart, who was recruited from another rival firm, Bank of America Merrill Lynch, in July.
“In addition, appropriate disciplinary action will be taken against other individuals in the equities business as a result of the incident,” said the bank.
“UBS also expects to take disciplinary action against responsible staff in other functions.”
UBS is also considering shrinking down its investment banking business – of which equities trading is a key part – in order to refocus it on purely serving the needs of its enormous network of wealthy individual clients.