UBS split IB from WM?

This Thread is meaningless, use the damn search function.

http://modernyuppie.blogspot.com/ The musings and antics of a Meathead college wrestler turned asset backed securities trader.

Before people get all emotional and dramatic over this news, please re-read the article and try to understand it. I don't think greater clarification is needed for those who are already in banking, but I'll spell it out anyway and relay our firm's message to the public. Also, unless you work at UBS Investment Bank or have also, by some unfathomable means, received Peter Kurer and Marcel Rohner's message, please refrain from spitting out nonsense, as I find most people on this forum do. There's a big difference in the amount of information you receive internally as compared to public news. We have our problems, nobody will deny that, but it seems overeaction, especially amongst the ill-informed undergrads on this board, are the norms. With that said, UBS, along with other hard-hit banks by the subprime, will be fine.

UBS is not spinning off anything. It's simply creating a more strictier boundary between the 3 business units (Investment Bank, Global Asset Management, and Wealth Management) so that there will be more accountability and reflectability between the performance of senior managers in each business.

This means more definition of the individual P&L accounts of the MDs and less profit sharing across businesses. This does not necessarily mean that the firm will discourage cooperation amongst the 3 units, but that senior members of the firms should have more incentive and liability towards their own successes. We are, however, discouraged from 'forcibly' operating with a one-firm mentality and to seek more independence in our daily work. In other words, we are instructed not to cooperate across businesses for the sole sake of upholding the one-firm ideology, but to exercise cooperation based on needs dictated by natural means.

The UBS Investment Bank will not be spunoff. Internally, this has been clarified and clarified again. If you work within the bank, you would understand why a divestment would be the worst decision for the bank, both in terms of the business model and, more importantly, the impacts on the financials. Realize foremost that the investment bank, not just for UBS but for all other bulge brackets banks, are significantly undervalued in the current markets. Plus, acquirors of investment banks are always skeptical, because investment banks, by nature, are worth nothing other than its people. And we all know from history that bankers HATE being bought out. Ken Moelis' departure from Credit Suisse to UBS after the latter's acquisition of DLJ concluded with an ensuing exodus of 78 bankers from CS.

Thanks for your input.what about its fixed income division which has been hit hard the most? Do you think that might get to where or half they were during the boom era?

A touchy subject for the Gnome eh