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THURSDAY, NOVEMBER 26, 2009
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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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(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
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.
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,.
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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frogosopher
Apr 15, 09 8:24 AM CDT
Oh, boy. And I was told by UBS--not long ago--and by AIG, as well--that they'd always be there FOR ME. I guess their million-dollar/pound PR departments were just trying to get my business, promises be damned. Reply
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