UBS is said to favor a shake-up of management rather than a sale of its U.S. wealth management business, according to the Financial Times. UBS’s U.S. wealth management business consists largely of Paine Webber, which it acquired in 2000. UBS, reportedly considering the sale of Paine Webber to raise capital, discussed a possible sale with Morgan Stanley late last year. Those talks were unsuccessful.
After taking over in February, UBS CEO Oswald Greubel also considered selling Paine Webber but decided to keep the business “for the time being,” and contacted potential senior managers about possibly taking a top role at Paine Webber, according to the article.
A UBS spokesperson recently told Reuters that UBS remains “committed” to its U.S. wealth management business and does not intend to sell it. The spokesperson declined to comment on a management shake-up.
UBS has lost billions of dollars as a result of its involvement in the global financial crisis. It also has been in the news as a result of a high-profile U.S. tax case, in which the U.S. seeks to compel UBS to identify some 52,000 American clients suspected of secreting $15 billion in off-shore accounts to avoid payment of U.S. taxes. UBS claims that would violate Swiss bank secrecy laws.
A recent survey showed that Bank of America has overtaken UBS as the world’s largest wealth manager. The wealth management business is facing shrinking wealth and another difficult 12 months head, according to the survey.
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