UBS chief resigns in fallout from €2.3bn rogue trader loss
Published 26/09/2011 | 05:00
THE CEO of Switzerland's biggest bank has resigned after failing to prevent a €2.3bn rogue trader scandal.
UBS CEO Oswald Gruebel quit after the bank lost €2.3bn as a result of trading by Kweku Adoboli. He has been replaced on an interim basis by Sergio Ermotti, who ran the bank's European business.
Mr Ermotti only joined the bank in April after a career mainly spent at rivals Merrill Lynch and UniCredit. He is already being tipped to stay on a permanent basis.
Mr Ermotti is tasked with accelerating a review of the bank aimed at cutting the amount of money it puts into investment banking, while expanding its wealth management activities. Reducing risk won't necessarily hurt earnings, Mr Ermotti told reporters yesterday, adding that it's too early to say whether the trading loss will have an impact on jobs or pay.