UBS, one of the banks hardest hit by the subprime collapse with $37.7 billion in writedowns, is under attack from an investor group led by one of its former presidents, reports the Wall Street Journal. The group wants the Swiss banking giant to spin off its investment bank, blaming it for the bank's woes.
Luqman Arnold, forced out in a 2001 power struggle three years after the bank was formed, also wants UBS to “act with urgency” to sell its asset management business and fire its newly named chairman. UBS has lost wealthy clients from its more conservative private-client bank as its finances worsened. Shares are down 56% in the past year, and 38% since January.