Morning Coffee: UBS Says No to Fixed Income

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UBS is about to receive a major facelift, one that will see the Swiss bank completely overhaul its investment banking business while cutting as many as 10,000 jobs.

In an effort to reduce its risk-weighted assets and return more capital to shareholders, UBS is expected to spin off or shutter much of its fixed income operations. Chief Executive Officer Sergio Ermotti is expected to announce the restructuring plan at some point on Tuesday, unless, of course, Hurricane Sandy has a say in the matter.

The axe won’t fall immediately; UBS is expected to make the cuts over a three-to-five-year period, conceivably in an effort to encourage employees to move on voluntarily, meaning the firm won’t have to pay for thousands of redundancy packages.

“It’s going to be a slow wind-down,” one U.K. headhunter told eFC. “Everyone will receive zero bonuses and UBS will hope that they then quit of their own accord.”

While shrinking its fixed income business, UBS will surely concentrate more resources on its staple business, wealth management, a unit that’s thriving as consumers look for help managing their investments.

Insurers Ramping Up Hiring (eFinancialCareers)

Insurers like Prudential, Guardian and New York Life are adding thousands of financial services reps and various back office employees as consumers and businesses gravitate toward less risky wealth management products.

Rejecting ‘Rogue’ (Financial News)

Kweku Adoboli rejected the idea that he was a “rogue trader” at UBS, telling a London court that his market view was guided by his senior colleagues. “I wish I was a rogue trader. I wish I hadn’t listened,” he said.

Libor Probe Gets Personal (Bloomberg)

A handful of traders at UBS and the Royal Bank of Scotland have been put on leave as the banks investigate their role in the Libor rate-fixing scandal.

Where’s my MF Money? (WSJ)

MF Global was suffering from one major problem before the brokerage firm collapsed into bankruptcy late last year: It had serious trouble keeping track of its own funds.

Credit Suisse Looking East (Bloomberg)

Credit Suisse is expected to launch an asset-management joint venture with a unit of Qatar Investment Authority, the emirate’s sovereign-wealth fund.

A Man Down (Bloomberg)

Michael Smith, one of the four founding partners of CVC Capital, will step down in January as the firm preps its latest fund. The remaining founding partners will continue to run the equity firm.

Impressing Recruiters (eFinancialCareers)

Finding work at a top investment bank means impressing graduate recruiters on initial interviews. Here’s how to pull it off.

Buzz Around the Office

Scared Skinny (MSN)

Want to lose some weight but you’re not that into that whole exercise fad? Just flip on a horror movie and let your fear do the work. A good scare flick can help you burn up to 200 calories.

List of the Day: Surviving Sandy

Here are three easy steps to make your life easier if you fear your power may go out.

  1. Pack a suitcase in the event you need to evacuate.
  2. Fill your freezer with bags of ice so your food won’t melt as fast.
  3. Charge all key electronic devices.

(Source: HuffPo)