What is the Future for UBS?
The internal changes at UBS are real, and I know everyone on here talks about it in negative light. From my collection of information from people on the inside, they are not cutting their 'Investment Banking Division', but rather certain groups related to fixed income trading and other market making groups. It sounds that the change will be affecting S&T as a whole, rather than advisory groups within IB, which people on here seem to believe. (Does this have anything to do with the LIBOR scandal?).
I also heard a lot about how UBS has to hold more capital against their credit, but this is happening to every bank in the states as a result of the new Basel standards. What makes this different for UBS, or maybe other European banks, and why is this blown up so much on the internet. That doesn't sound out of the ordinary.
Similarly, the firm has been consolidating into one building on 1285 6th Ave as a result of the changes. Are they substantially reducing employees to make this happen outside of the highlighted groups I mentioned above? Does anyone here know the incentive behind this, what it will change, and what it means for the firm going forward (in terms of Advisory).
As far as advisory goes (which is what my post is questioning), it does not sound like it will be affected as much as most people believe. The focus is certainly being put on WM, but again, how does this differ from how UBS has always been structured? It has always been a top contender in terms of AUM for its wealth management clients. Why does this seem to be blown out of proportion as well?
I also know that there has been a recent crackdown here in the states with offshoring funds to Switzerland, which may have an obvious effect on their wealth management segment that they want to focus so heavily on. Curious to hear your thoughts/outlook on this as well?
Best,
This doesn't have anything specifically to do with the LIBOR fines, but, obv, LIBOR and Kweku didn't help matters.
In general, the problem for Swiss banks is that the powers that be in Switzerland are pushing for capital requirements that are well above and beyond Basel. This means that higher volume, lower margin and higher leverage businesses like fixed income become less viable than they were previously. Hence, the pullback.
Inasmuch as advisory and other investment banking biz doesn't require a lot of balance sheet etc, it sounds like it won't be affected that much at all.
My Z$2c...
Last summer (2012) a bunch of my friends summered there (IB) and no one received FT. How would you explain that?
and they witnessed IB analysts being kicked out right when they were summering there. It was SO terrifying!!
Guy I know went from MO/FO year long intern to SA IB to FT IB in the last 18 months in the UK.
Do you work at UBS? Why are you saying so positively about the firm?
Also, sorry for the confusion. I do not work there. I am an SA candidate going through accelerated recruiting there, and I am just curious about the mixed opinions I have heard, both from this website and from people from within UBS.
NOt relevant to UBS in the US, but UBS in Australia remains one of the strongest (and most badass) banks around, at least in ECM. From what I heard/read, many bankers there maintained their bonuses during the GFC because of performance/leadership (and perhaps a bit because the GFC didn't really hit Australia). Regardless, it's a top bank there.
Reasonably strong bank over here in Southeast Asia, too. Still not quite GS-level, and all of the BBs in general have to share the bookrunning with individual countries' local banks, but they're doing okay. DCM team in particular seems pretty strong, from what I hear.
interesting, i had no idea
M&I has a article about UBS LA when Moelis was running show over there. I did not work there but a few of my friends did, the stories they tell are unreal. Seriously psychotic upper level guys and real BSD's.
I think that once some of the top talent ended up leaving, like Moelis, the crisis happened and then the fines.. It called for a change. The culture of the Swiss bank is conservative, probably making current employees leave and kind of kept new top earners away. Currently, I think its just a period of restructuring and positioning. It appears they are taking steps to protect themselves i.e. no more instant messaging etc.
Thanks for all the input. I'll give that article a read
This is really informative. WSO should have posts like that for all bigger banks to get an updated view on what's going on internally.
//www.wallstreetoasis.com/forums/ken-Moelis-of-UBS-la-possibly-leaving
http://blogs.wsj.com/deals/2007/03/15/Moelis-era-at-UBS-may-be-coming-to-a-close/
Interesting post about UBS LA: //www.wallstreetoasis.com/forums/ubs-la-classic-definition-of-too-busy
I know at least 2 of the analyst during that time went to different HF in the Los Angeles area and are still there.
Bumping for more insights into UBS particularly in Asia.
bumping because of the overblown misperception of UBS on WSO....
A good family friend of mine who works at GS has friends at UBS and they all said UBS sucks and wanted out.
Their own fucking employees believe they suck, lol.
To add, I know a kid who interned at UBS as a sophomore inNYC, then as a junior, he got to a superday at GS. When he told the interviewer he worked at UBS investment banking the previous summer, the interviewer started laughing. That's sad.
Do not know the situation in US, but top 3 bank in Asia ex Japan (at least in ECM and M&A, not quite sure about DCM)
Well i posted an in dept article of UBS some days ago.They are restructuring heavily and though the IB side isnt looking rosy atm i must they are doing well in the PWM department and have a higher income per broker ratio as compare to MS and CS i think.So UBS atm seems only good for guys in PWM not so much in other areas
UBS IBD - Predicting the Future (Originally Posted: 07/14/2009)
Worst case scenario, say UBS is forced to spin off its US PWM division...would that mean they would have to release the US IBD as well? Where is the line drawn?
The dickheads in the government are threatening to seize all UBS assets in America, so I assume that means their entire operation.
I think it's a bluff at this stage, but you never know.
The WSO Guide to Understanding TARP
UBS may have to seize its wealth management assets in the US but it would NEVER spin off its PWM business. It has been number one in wealth management for years. They are likely to spin off regional offices of other areas of the bank (IBD), however.
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what do you mean by regional IBD offices? Like LA or Houston? And why?
The only reason banks have regional offices (LA-mostly tech, Houston-energy)is because most of the companies in the industry happen to reside in those areas, however, everything can be done from NY. It is much easier to shut down small offices than to wipe out a group in NY. This has happened in the past.
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