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UBS Announces $1.7B More Losses, 8,700 Job Cuts

Bank blames US tax fraud case for some of its 1Q losses

By Rob Quinn, Newser Staff

Posted Apr 15, 2009 7:52 AM CDT

(Newser) – Bad times are continuing for UBS in the wake of last year's record loss, the Guardian reports. The troubled Swiss bank reported a $1.75 billion loss in the first quarter, and announced plans to ax 8,700 employees—11% of its global workforce—sparking rumors that it plans to downsize by ditching its investment banking arm to concentrate on wealth management.

UBS said the layoffs were an unavoidable result of its plan to quit "high-risk and unpromising businesses." The bank is being pursued by the SEC and the Justice Department for the names of suspected American tax cheats. It blames the tax fraud allegations for scaring off investors and contributing to a net outflow of new money in the first quarter.

UBS said it plans to exit "high-risk and unpromising" areas of its business. (©Allie_Caulfield)

Mark Branson, chief financial officer for UBS Global Wealth Management, is sworn in to testify about tax havens before the Senate Permanent Subcommittee on Investigations. (AP Photo/J. Scott Applewhite)

Kaspar Villiger, future chairman of the board of Swiss bank UBS, is interviewed after a press conference in Zurich, Switzerland,. (AP Photo/Keystone, Alessandro Della Bella)

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UBS Announces $1.7B More Losses, 8,700 Job Cuts

Bank blames US tax fraud case for some of its 1Q losses

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UBS Announces $1.7B More Losses, 8,700 Job Cuts

Bank blames US tax fraud case for some of its 1Q losses

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OTHER STORIES ON OUR RADAR

layoffs • Switzerland • UBS • earnings reports • tax evasion • bank • banking • tax haven

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Switzerland's Oldest Bank Indicted Over US Tax Cheats

Wegelin brought down by probe

UBS Chief Resigns After Trader's $2.3B Loss

Oswald Gruebel steps down from Zurich bank

12K Take IRS' Amnesty Deal for Offshore Loot

Agency pulls in $2.7 billion

Rogue UBS Trader Turned Himself In

And that's the only way the bank found him

Rogue UBS Trader Loses $2B

Swiss bank's shares dive after unauthorized trading revealed

About Us

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Newser By Users

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What is Newser?