UBS Shakeup: The Never-Ending Story

The devolution of UBS's investment bank continues.

UBS AG's second ouster of a group chief executive in less than two years could soon be followed by top-level change within the investment banking unit, the New York Post reports Friday.

Unnamed sources told the Post that "a mutiny is brewing" within the investment bank, aimed at its head, Jerker Johansson. For its part, UBS has denied rumors that Johansson is leaving, the newspaper says.

A conference call that Johansson hosted about a week ago to address bankers' concerns reportedly "devolved into a shouting match." Asked about that, a UBS spokeswoman told the Post: "This is not an unusual occurrence after earnings. A robust and healthy debate in town halls, conference calls, and smaller groups is encouraged among senior management."

On Thursday UBS announced the surprise resignation of Marcel Rohner as group CEO and named as his replacement Oswald Grubel, who had retired as chief executive of rival Credit Suisse in 2007.

UBS's two main businesses are its private-client bank, the world's largest, and its investment bank. The investment bank had expanded aggressively earlier this decade under former Group CEO Peter Wuffli. Since Wuffli's ouster in July 2007, the investment bank has been shrinking even as it suffered ever-wider losses that forced UBS to accept a $60 billion bailout from the Swiss government last October. Johansson's predecessor as head of the investment bank unit, Huw Jenkins, was forced out in October 2007.