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Old 18.11.2011, 10:58
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Swiss banking giant UBS said on Thursday it was to dramatically cut back its investment bank arm, reducing its risky assets by half, or 145 billion francs ($159 billion).

Read the full article: UBS shrinks investment bank, halves risky assets

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Old 18.11.2011, 12:31
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Re: UBS shrinks investment bank, halves risky assets

Here we go again......"The investment bank will be "more focused and less complex," UBS said on Thursday, while revealing that the number of people it employs was expected to drop from 18,000 to 16,000 by the end of 2016.

This means 400 to 500 more staff will go on top of the 3,500 cuts announced across the bank in August, a spokesman said"

Thankfully, the time horizon of 4 years will at least make it somewhat easier as people may start looking for alternatives already...
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Old 18.11.2011, 12:34
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Re: UBS shrinks investment bank, halves risky assets

If they are going to be selling their Government Debt holdings, well thats just on par with all the other European banks.
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Old 18.11.2011, 23:38
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Re: UBS shrinks investment bank, halves risky assets

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Here we go again......"The investment bank will be "more focused and less complex," UBS said on Thursday, while revealing that the number of people it employs was expected to drop from 18,000 to 16,000 by the end of 2016.

This means 400 to 500 more staff will go on top of the 3,500 cuts announced across the bank in August, a spokesman said"

Thankfully, the time horizon of 4 years will at least make it somewhat easier as people may start looking for alternatives already...
That UBS is enroute to reposition itself is good anyway. And that the cuts are not done within 3 months but fairly longterm means that first those affected get time to find alternatives and that second the economy will profit from qualified personnel gradually available. Bitter for many such EXbankers of course will be that nobody in the economy pays as much as they were used to
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Old 18.11.2011, 23:44
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Re: UBS shrinks investment bank, halves risky assets

The move is easy to understand:

Lower the risks (halving the investment banking) and higher asset management division.

Miss that part in the news. With Asia growing someone will have to manage the fortunes from Asia.
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Old 19.11.2011, 05:21
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Re: UBS shrinks investment bank, halves risky assets

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With Asia growing someone will have to manage the fortunes from Asia.
I guess you meant "of"... but "from" is what I think we will see: Switzerland did not become big in banking cause their banks are so good or competitive. The country got big cause it offered stability which is something large parts of the world didn't have. So it's a great place for African dictators and 3rd world "businessmen" to store their money. On top of that was it always a great place to "optimize" your German taxes.

Asia on the other hand, especially the fast growing part, is stable. While they have a bucket of problems do I personally believe that even the PRC is more stable than the EU right now. I don't see why Asians would bring their money to Switzerland, the Swiss banks will (and do) have to come over here. And they will have to compete, something they aren't that used to. For the topic does that translate to more UBS and CS jobs in Asia in the future... not necessarily in Zurich.
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Old 19.11.2011, 12:29
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Re: UBS shrinks investment bank, halves risky assets

they plan to do that in the next 5 years... which, in market terms, means .. NEVER.

You can bet that within the next 5 years there will be several major financial crises, rogue traders, bankruptcies, restructurings, devaluations etc etc - which will render most scenarios and projections of today rather moot.

If they seriously want to change it will have to be done in the next 6 months. a 5 year plan is just whitewash.
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Old 19.11.2011, 14:30
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Re: UBS shrinks investment bank, halves risky assets

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I guess you meant "of"... but "from" is what I think we will see: Switzerland did not become big in banking cause their banks are so good or competitive. The country got big cause it offered stability which is something large parts of the world didn't have. So it's a great place for African dictators and 3rd world "businessmen" to store their money. On top of that was it always a great place to "optimize" your German taxes.

Asia on the other hand, especially the fast growing part, is stable. While they have a bucket of problems do I personally believe that even the PRC is more stable than the EU right now. I don't see why Asians would bring their money to Switzerland, the Swiss banks will (and do) have to come over here. And they will have to compete, something they aren't that used to. For the topic does that translate to more UBS and CS jobs in Asia in the future... not necessarily in Zurich.
Compete ? Depends on the sector. In many sectors they had to compete always, in others they had not to.

Jobs of Swiss banks in Asia will result in more jobs in Zürich, as always. And while you speak about Africa, Asia not only has been the emphasis of the Swiss economy for at least three decades but also of the Swiss banks.
Here the Asia map of UBS :
http://apps2.ubs.com/locationfinder/...eoEntityType=2
and here of CS :
https://www.credit-suisse.com/who_we...ce_locator.jsp
which reveals that also CS is already heavily active in Asia

If you realize that Asian countries like China and India for years have been the most important "suppliers" of customers to the inbound-tourism and that Asian countries are the most important export markets of the Swiss economy, than you can see that a few African dictators are not of such a paramount importance. They get into the headlines as their moves are often shrouded in scandal and corruption.

The Arab World is different from Africa in so far as the Arab countries from Morocco to Oman are in a similar league than Asia.

And to keep the balance, the most important SINGLE country for the Swiss economy (not just the banking sector) still is the USA. That country may be in trouble, but still is THE heavyweight par-excellence

Last edited by Wollishofener; 19.11.2011 at 14:54.
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Old 19.11.2011, 14:41
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Re: UBS shrinks investment bank, halves risky assets

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they plan to do that in the next 5 years... which, in market terms, means .. NEVER.

You can bet that within the next 5 years there will be several major financial crises, rogue traders, bankruptcies, restructurings, devaluations etc etc - which will render most scenarios and projections of today rather moot.

If they seriously want to change it will have to be done in the next 6 months. a 5 year plan is just whitewash.
Mr Ermotti in a recent interview was even stricter. He spoke about changes to be implemented within 4 months. Some changes according to him already are started, some will be implemented within 2 months, some within 4 months, others within a year and some within 5 years.

As you can see here
https://www.credit-suisse.com/who_we...on_mission.jsp
they at CS already use the past-tense to speak about new strategies. Their CEO Brady W Dougan and his team are possibly a step further than Ermotti and his folks.

What then is the sense of speaking about a "5-years-plan" ? Simple, it is to keep off the chaps of the KV Zürich (Kaufmännischer Verein Zürich) who without this phrasing would be in the reception-rooms of UBS on Monday morning
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