Tuesday's Headlines: UBS CEO to propose "radical overhaul" after huge loss
UBS CEO Oswald Gruebel will propose a "radical overhaul" of the investment banking division when he meets with the UBS board in Singapore this week, Reuters reports.
The proposal comes after $2.3 billion of losses resulting from alleged rogue trades were discovered at Switzerland's biggest bank. UBS has come under attack for allowing the massive loss to occur, and Gruebel has personally been criticized for not running a tighter ship. He has resisted calls for a resignation.
"Ossie has said he's staying and he'll be the guy who sees us through it," a top executive at the bank with direct knowledge of the matter told Reuters.
The UBS board is meeting in Singapore because Government of Singapore Investment Corp. is the bank's biggest shareholder.
Other News:
US probes 8 foreign banks for tax evasion; targets "fabled Swiss bank secrecy." [Bloomberg]
UBS investment banking head tells staff to "move forward forcefully and decisively" in wake of rogue scandal. [Financial Times]
Morgan Stanley's co-heads of investment banking clash, drawing jokes from colleagues. [BusinessWeek]
President Obama proposes "Buffett Rule" to tax top earners as much as middle income earners. [New York Times]
BIS to investigate how banks calculate assets for meeting capitalization rules. [Reuters]
Citi Private Bank creates new group to manage Asian clients in North America. [On Wall Street]
European banks may need more capital as crisis worsens, top EU official says. [Wall Street Journal]
Lloyds Banking to sell commercial property portfolio as it sheds non-core loans. [Financial Times]
Capital One Financial to add 3,600 positions this year; 1,800 already hired. [Biz Journals]
EU regulators ok large German rescue package for HSH Nordbank. [Bloomberg]
Credit Swiss ends German tax evasion case with 150 million settlement. [Financial Times]
SEC proposes new rule to prevent conflict of interest by ABS creators. [Bloomberg]
Consumer Financial Protection bureau working on new rules ensuring borrowers can repay mortgages. [Reuters]
