Although UBS CEO Carsten Kengeter has a long history in investment banking, it should not be assumed that he likes investment bankers.
The Wall Street Journal has unearthed why it is that investment bankers keep leaving UBS in the US. Apparently, it's because Carsten has
been saying unpleasant things.
"He told us that bankers are spoiled children and we're the ones who messed this place up," one recently-departed UBS banker told the Wall Street Journal. "You would get off the calls and think, 'how can I stay here any longer?'"
The paper goes on to claim that there's a feeling that the US business is being starved of cash, that there are plenty of empty cubicles and corner offices and that Carsten wants to expand, but prefers to "send a tough message" - all of which is denied by UBS.
Whether the WSJ's allegations are true or not, such toughness makes sense. As we noted recently UBS investment bankers' profit per head is the worst in the industry.