Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

UBS chief exec Oswald Gruebel resigns amid scandal

By Ritika Sharma Subscribe to RSS | December 15th 2011 | Views:
loading
 
  


UBS chief executive Oswald Gruebel resigned Saturday, after taking the blame for an estimated loss $2.3bn (£1.5bn) caused by unauthorized speculative trading at its London-based investment banking unit.

The board announced Sergio Ermotti would take over as interim chief executive with immediate effect while they evaluate internal and external members to replace Gruebel. UBS plans to shrink operations in its investment banking division, to prevent the element of risk in trading activities and protect private investors' wealth. The bank is facing a lot of flak for failing to catch the massive loss that is likely to wipe out UBS's quarterly profits.

UBS board president Kaspar Villiger stated, “Oswald Grübel feels that it is his duty to assume responsibility for the recent unauthorised trading incident. It is testimony to his uncompromising principles and integrity. During his tenure, he achieved an impressive turnaround and strengthened UBS fundamentally. He steps down having helped make UBS one of the world’s best capitalised banks.”

Meanwhile, in order to win over investors and prevent similar incidents in future, some substantive changes in the leadership and risk-management policies are underway at the Swiss bank.

$2 billion loss at UBS:- UBS was stunned earlier this month when losses to the tune of $2 billion were discovered because of unauthorized trading by 31-year-old equities trader Kweku Adoboli in London.

Kweku Adoboli was arrested last week and is charged with fraud and false accounting. He has been remanded in custody until 20 October and has made no application for bail.

The bank is facing a lot of flak for failing to catch the massive loss that is likely to wipe out UBS's quarterly profits.

In a memo to the staff Gruebel stated, “That it was possible for one of our traders in London to inflict a multibillion loss on our bank through unauthorized trading shocked me.

“This incident has worldwide repercussions, including political ones. I did not take the step of resigning lightly. I am convinced that it is in the best interests of UBS to approach the future with a new leader at the top.”

Restructuring of investment bank:- Meanwhile, in order to win over investors and prevent similar incidents in future, some substantive changes in the leadership and risk-management policies are underway at the Swiss bank. UBS plans to shrink operations in its investment banking division, to prevent the element of risk in trading activities and protect private investors' wealth. UBS was stunned earlier this month when losses to the tune of $2 billion were discovered because of unauthorized trading by 31-year-old equities trader Kweku Adoboli in London.

he board announced Sergio Ermotti would take over as interim chief executive with immediate effect while they evaluate internal and external members to replace Gruebel. In the media statement Villiger said, “In the future, the investment bank will be less complex, carry less risk and use less capital to produce reliable returns and contribute more optimally to UBS’ overall objectives.”

Ritika Sharma - About Author:
Here you can get the latest updates about Finance news. Get more details about Finance and investment news .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/management-articles/ubs-chief-exec-oswald-gruebel-resigns-amid-scandal.htm

Related Management Articles Subscribe to RSS

Get alerts about today news
Published by Nidhigupta on May 16th 2012 | Business
Online news updates help in getting the newfangled news every time. It is offline as well as online....
 
Aftermarket news- know what’s happening!
Published by Jamessms on January 30th 2012 | Business
If you are into any kind of automotive business, you need to know about what exactly is going on in ...
 
Get the neoteric global news now online
Published by Nidhigupta on June 27th 2012 | Business
Global news is featured on the internet. There are plenty of sufficient numbers of news websites and...
 
Automotive news – for expert opinion
Published by Jamessms on March 7th 2012 | Business
Automotive industry is one of the most buzzing industries of the world. Irrespective of the turbulen...
 
Means for getting top world news
Published by Nidhigupta on May 1st 2012 | Business
The web is responsible for the dealing of the potential energy in the globe. The internet might stan...
 
The upsetting breaking news for India
Published by Nidhigupta on July 23rd 2012 | Business
In this competitive world, it has become compulsory to keep ourselves updated with all the current e...
 
The country has come together with the state news of India
Published by Nidhigupta on July 11th 2012 | Business
We all understand that it is essential to have proper news not just about the country as a whole but...
 
Military news catering to the people with specific interests
Published by Ashish Pandey on January 12th 2012 | Business
Military news can specifically serve to a group of people who have special interests in knowing abou...
 
Get the Unlimited latest news online
Published by Nidhigupta on June 22nd 2012 | Business
People have developed a general awakening amongst them and are very much interested in raising their...
 
UP news in the limelight
Published by Nidhigupta on June 21st 2012 | Business
UP news basically refers to the events and occurrences that take place all around in every part of t...
 
The advantages and drawbacks of entertainment news
Published by Nidhigupta on July 6th 2012 | Business
Today news is considered and is indeed a very strong and the most popular weapon which is used by th...
 
Connect to world with international news
Published by Nidhigupta on May 25th 2012 | Business
It is crucial for everyone in order to depend on day to use global news. We are able to acquire a gr...
 
The flooding of latest sport news
Published by Nidhigupta on July 12th 2012 | Business
Every guy since his childhood days loves to indulge himself into sports. Be it rugby, basketball, cr...
 
The progress today news has made
Published by Nidhigupta on June 2nd 2012 | Business
News is made available to us via news channels, news blogs and websites which feature all the recent...
 
The benefits of world news
Published by Nidhigupta on June 18th 2012 | Business
The world is coming closer and closer day by day thanks to the latest innovations in science and tec...
 
Different modes for receiving UP news
Published by Nidhigupta on July 9th 2012 | Business
All the events occurred in the state of Uttar Pradesh is covered by the UP news. UP news takes note ...
 
The latest news that reflect poor conditions of mother earth
Published by Nidhigupta on July 19th 2012 | Business
However, the breaking news is not just limited to these natural calamities. Human still undertake m...
 
Get breaking news with a single click of mouse
Published by Nidhigupta on June 28th 2012 | Business
Due to the latest innovations in technology, media has emerged as a strong power in influencing mass...
 
KlikBang Money- the news source!
Published by Jamessms on March 15th 2012 | Business
Wish you had an amazing source of information that could keep you informed about possibly just anyth...
 
Uttar Pradesh news reaches all over the world
Published by Nidhigupta on May 31st 2012 | Business
Uttar Pradesh is one of the states of our country. Everything occurs in here including different eve...