UBS is the latest major bank to announce massive lay-offs to cut costs and trim down for difficult years ahead, Reuters reports.
Switzerland's largest bank says 3,500 employees will be laid off, or 5.3% of total staff. Almost half of the cuts will occur in the investment banking unit; the reductions will pare expenses by $2.5 billion each year.
"Like rival Credit Suisse Group AG, UBS has been grappling with rising regulatory costs and a red-hot Swiss franc, which are eating into profits," Reuters writes, adding that banks around the world are paring costs as the economic outlook remains murky. "Banks are slimming down as weak investment trading this year looks set to continue, leaving many carrying high costs after hiring aggressively in 2009 and early 2010."
News of the cuts helped boost the bank's stock, which last traded up slightly from Monday's close.
Boutique investment banks find it easier to land deals after financial crisis. [DealBook]
S&P head to leave in wake of US downgrade; to be replaced by Citibank executive. [Reuters]
Morgan Stanley took $107 billion from Fed at height of the financial crisis. [BusinessWeek]
Societe Generale signs liquidity contract with Rothschild to stabilize stock. [Wall Street Journal]
Books by financial analysts Michael Mayo and Richard Bove due to hit stores soon. [DealBook]
Bank of America settles credit card suit with San Francisco for $5 million. [Wall Street Journal]
European banks face higher borrowing costs to raise needed $100 billion. [Bloomberg]
US DOJ says Deutsche Bank knew about mortgage company lies, can be held liable. [Reuters]
Bank of America shares drop after announcement it will keep some of its stake in Chinese lender. [Wall Street Journal]
Goldman Sachs CEO Blankfein hires lawyer who defended WorldCom, Enron executives. [Bloomberg]
Bank of Montreal investment banking gains lift third-quarter profit 19% percent. [BusinessWeek]
HSBC India says it plans to increase pay as rivals poach employees. [Bloomberg]
Bank of America may need $50 billion in capital, Jefferies analyst says. [Biz Journals]
Bank of America doesn't need more capital, analyst Bove says. [Bloomberg]
RBS eyes technology-based trading, creates new position to oversee foreign exchange. [Dow Jones Newswires]