All other businesses in the Investment Bank, and our
Global Wealth Management & Business Banking and Global Asset Management
businesses, continue to record good results. Mr. Wolf graduated from the Wharton School at the University of
Pennsylvania with a B.S. He is a Swiss citizen. He also chairs
the Swiss Institute for International Studies (SIAF).
Mr. He is married with two children.
There are other, smaller, losses in equities proprietary trading within
an overall satisfactory result.
“On August 14, I said that if turbulent
conditions prevail throughout the quarter, we will probably see a very
weak trading result in the Investment Bank, offset by predictable
earnings from wealth and asset management. Global Asset Management continues to perform well. I have therefore taken
decisive action to be as transparent as possible. Scoby began his career with O’Connor and
Associates in 1987 and became a Managing Director in 1993. Gall office and later broadened his experience
with assignments in Nyon, New York, Basel, Zurich and London.
Despite the unsatisfactory results for the third quarter, we still
expect to end the year with a good level of profits and in a strong
capital position. During 2008 we will continue
to focus on improving cost and balance sheet efficiency.”
Where possible, holdings are marked at the quoted market price. Prior to his appointment to his current position in 2004, Robert
Wolf was Global Head of Fixed Income for over three years.
. Mr. Prior to that, he held various
management positions in SBC’s investment banking operations, first as
the Continental European Head of Merchant Banking and later as the Chief
Credit Officer for EMEA. UBS’s financial businesses employ more than 80,000 people
around the world. Joseph Scoby’s record both as
head of A&Q and previously as Joint Head of US Equities within the
Investment Bank makes him an ideal successor to Walter Stuerzinger. Wolf also participated as a panel member at
the inaugural Wall Street forum for HIV and AIDS alongside former UN
Secretary Kofi Annan.
When most mortgage backed securities positions were set up there were
offsetting positions in place, designed to mitigate risk in normal
market conditions. This led to substantial valuation losses, including in
securities with high credit ratings. Mr. Marcel
Rohner, Group CEO, will reorganize senior management, take over as
Chairman and CEO of the Investment Bank, and accelerate structural
improvements to the firm.
These write downs are mainly of (a) legacy positions of the now closed
Dillon Read Capital Management subsidiary and (b) positions entered into
as part of the Investment Bank’s mortgage
backed securities business.
Commenting on these changes Marcel Rohner said:
ZURICH & BASEL, Switzerland–(BUSINESS WIRE)–Regulatory News:
While the third quarter loss means that pre tax results for the full
year 2007 will most probably be below those for 2006, total earnings
should still be at a high level and UBS will finish the year in a strong
Our first quarterly loss in nine years is an unsatisfactory result,
especially after such a strong first half. We have thousands of
talented people throughout the organisation who, by working together,
will deliver further value to our clients and additional growth to our
Short bio Robert Wolf
Mr. in Economics. From
1995-1999 he was the Joint Head of US Equities at the Investment Bank,
with responsibility for approximately 650 employees. Mr. These have also been written down appropriately,
leading to a limited loss on these positions in third quarter.
Marco Suter, Executive Vice Chairman, UBS, will leave the Board of
Directors to become Group Chief Financial Officer, and join the Group
Executive Board. A&Q currently has over USD
60 billion in assets under management. Its shares are listed on the SWX Swiss Stock Exchange,
the New York Stock Exchange (NYSE) and the Tokyo Stock Exchange (TSE).
UBS is one of the world’s leading financial
firms, serving a discerning international client base. Management action has been taken to
make certain these positions are appropriately valued and risk managed.
With effect from today:
In the third quarter, UBS will recognize substantial losses in FIRC
within the Investment Bank, mainly on its holdings of securities related
to the US sub prime residential mortgage (RMBS) market. UBS remains a formidable
competitor in financial services and is well positioned to deliver
long-term profitable growth.”
UBS is the leading global wealth manager, a top tier investment banking
and securities firm, and one of the largest global asset managers. These positions consist overwhelmingly of
AAA-rated tranches, 80% with a weighted average life of less than three
years. Mr. Clive Standish, Group Chief Financial Officer, will retire.
UBS has no material exposure to conduits.
Short bio Marco Suter
Working closely with other members of the management team and the key
investment professionals within A&Q, Mr. The one firm approach requires a
successful and profitable Investment Bank. Huw Jenkins, Chairman and CEO of the Investment Bank,
will step down from his position and become a senior advisor to Marcel
Short bio William Ferri
Continued strong performance in other business areas
Mr. William Ferri, currently
Head of Business Development and Logistics for A&Q, will be appointed as
the new Global Head of Alternative and Quantitative Investments.
The remaining relevant positions in direct sub prime RMBS have a current
net value of USD 19 billion. He also has extensive
experience in solving institutional and corporate client problems using
derivatives. He is on the Executive
Leadership Council for the Multiple Myeloma Research Foundation, on the
Board of Trustees for the Children’s Aid Society, the Board of Directors
for the partnership for NYC and on the Board of Directors for the
National Sports Museum. In fact, conditions remained
turbulent, so we will make an overall pre-tax loss at Group level for
In third quarter 2007, expected pre-tax loss for the Group between
CHF 600 million and CHF 800 million, due mainly to write downs and
losses in the FIRC business within the Investment Bank
For the first nine months of 2007 pre-tax profits for the Group in
the order of CHF 10 billion, and expect to end the year with good
level of profits and a strong capital position
All other businesses in the Investment Bank, as well as the Global
Wealth Management & Business Banking and Global Asset Management
business groups, performing very well
— Investment Bank Chairman and CEO Huw Jenkins to step down. Scoby has a BS from Wharton School and an MA from the
University of Pennsylvania, both earned with honors in a total of four
years of study and awarded in 1987.
As a result of the planned changes within the Investment Bank, overall
staff numbers will fall by about 1,500 by the end of this year.
Results for third quarter 2007 will be announced on October 30, 2007 as
“I am confident that, with these changes and
by properly absorbing the lessons of this quarter, we will become a
stronger bank. Suter was born on 7 May 1958. We have a strong balance sheet, a strong franchise, and
leading positions in all businesses in all regions. However, the deterioration in the US sub prime
residential mortgage backed securities market, especially in August, was
more sudden and more severe than in recent history, and markets became
illiquid. Ferri began his legal career practicing corporate law at Seward &
Kissel, from 1991 to 1995. His long experience and knowledge of UBS, including as
Group Chief Credit Officer, make him extremely well qualified for this
position. Pre-tax profits for the
first nine months of 2007 will be in the order of CHF 10 billion. Following these actions, UBS is in
a strong position to continue to grow its client businesses.
Short bio Joseph Scoby
UBS is present in all major financial centers worldwide. He originally worked for PaineWebber
Inc. For most
sub prime holdings, this is not possible. Overall, FIRC
will record negative revenues in the order of CHF 4 billion.
Within the Investment Bank, Money Markets, Currencies and Commodities
(MCC) will be integrated into Fixed Income under the leadership of Andre
A video containing an interview with Group CEO Marcel Rohner is
available at www.ubs.com/media as
well as at www.cantos.com. In
Switzerland, UBS is the market leader in retail and commercial banking.
All other UBS businesses remain strong. Suter first joined the bank in 1974 as an
apprentice at SBC’s St. Suter has been with UBS and its predecessor, Swiss Bank Corporation,
since 1974. Mr. Valuations therefore mostly
use models with observable inputs, where possible, and level 3 valuation
Mr. He is a member of the
Global Asset Management Executive Committee and a member of the UBS
Group Managing Board.
The marks take a cautious view of future developments in the US mortgage
market and UBS is content to hold these securities at this level of
Mr. These securities are either AAA-rated or High Grade, and have a
short weighted average life.
Marcel Rohner, Group CEO, said: “UBS operates on the principle that
management is accountable to shareholders. Its business,
global in scale, is focused on growth. Wolf is a member of the UBS Group Managing Board and the Investment
Bank Management Committee. Between 1999 and 2005 he was Group Chief Credit Officer and
a member of the Group Managing Board. He also
serves as Global Chief Operating Officer for the Investment Bank.
Previously, he was General Counsel for the O’Connor
hedge fund and fund of fund businesses, and was on the O’Connor team at
its relaunch in 2000. Ferri is also responsible for managing the product
pipeline, business development, sales and client services.
Following a write down of positions in fixed income, rates and
currencies (FIRC), mainly related to deteriorating conditions in the US
sub prime residential mortgage market, UBS is likely to record an
overall Group pre-tax loss of between CHF 600 million and CHF 800
million for third quarter, ended September 30. Ferri has overall
responsibility for managing the logistics platform and business
development effort of the group, ensuring the investment team’s
requirements are met while maintaining the appropriate control
infrastructure. There is also a smaller position of below USD 4 billion net
exposure to sub prime securities through warehouse lines and retained
CDOs. He has also been the head of O’Connor,
a specialist hedge fund provider within A&Q, with assets under
management of approximately USD 7.5 billion. Wolf is on the Undergraduate
Executive Board of the Wharton School and sits on the Athletics Board of
Overseers at the University of Pennsylvania. Within the
Investment Bank, IBD has gained market share, the capital markets
business remains strong, and equities revenues –
though a bit weaker this quarter than a year ago, and in the context of
extremely difficult conditions – remain
Walter Stuerzinger, Group Chief Risk Officer (GCRO), will become Chief
Operating Officer, Corporate Center, and hand over the GCRO position to
Joseph Scoby, currently Global Head of Alternative and Quantitative
Investments (A&Q), Global Asset Management. A
glossary, containing definitions of some of the less-well known terms
used in today’s release, is also available at www.ubs.com/media.
In addition, UBS has taken significant write downs on positions in Super
Senior AAA-rated tranches of CDOs, based on level 3 valuation models.
Third quarter results
Joseph Scoby is Global Head of Alternative and Quantitative Investments
(A&Q), an alternatives platform within Global Asset Management with
approximately USD 60 billion in assets under management and 360
employees around the globe. From 1996 until the merger of SBC
and Union Bank of Switzerland in 1998 he served as regional manager of
the Zurich-Eastern Switzerland-Ticino area for the corporate and
commercial banking activities of SBC. Mr. I have also made
appropriate senior management changes, and will accelerate
already-planned changes to the firm. As an integrated firm, UBS
creates added value for clients by drawing on the combined resources and
expertise of all its businesses.
In addition to his roles at UBS, Mr. Group
CFO Clive Standish to retire
— Marco Suter, Executive Vice Chairman, UBS, to become Group CFO
— Walter Stuerzinger, Group Chief Risk Officer (GCRO), to become
Chief Operating Officer (COO), Corporate Center
— Joseph Scoby, Global Head of Alternative & Quantitative
Investments, UBS Global Asset Management, to become GCRO, UBS
Investment Bank changes:
— Robert Wolf, COO, Investment Bank, additionally appointed
President, Investment Bank
— Money Markets, Currencies and Commodities (MCC) to be integrated
into Fixed Income
— Initiation of cost reductions in Investment Bank
Marco Suter was elected to the Board of Directors at the Annual General
Meeting of UBS in April 2005 and thereafter appointed as Executive Vice
UBS has only limited exposure to leveraged lending with commitments of
about USD 13 billion. (since 1995) where positions held included Corporate Vice President
and Associate General Counsel to the Global Equities Division, and
Deputy Director of Compliance.
Marcel Rohner, in addition to his duties as Group CEO, will for the
foreseeable future take over the role of Chairman and CEO of the
Investment Bank. It has offices
in 50 countries, with about 39% of its employees working in the
Americas, 34% in Switzerland, 16% in the rest of Europe and 11% in Asia
Pacific. These events have led to the
management changes announced today. In Global Wealth Management &
Business Banking, all geographical regions continue to attract net new
money. He received a BS form Cornell University in
1988 and a JD from the University of North Carolina in 1991.
William Ferri is the Head of Business Development and Logistics for
Alternative and Quantitative Investments (A&Q), an alternatives platform
within Global Asset Management.
Commenting on these decisions, Marcel Rohner, Group CEO said:
Robert Wolf, Chairman and CEO, UBS Group Americas and Chief Operating
Officer Investment Bank, will additionally become President, Investment
experience includes portfolio management in commodity options,
convertible arbitrage, equities, equity derivatives, corporate bonds,
merger arbitrage, quantitative equity, real estate finance, and
fundamental based equity long short funds. He served as Global Head of Fixed Income from
2002 – 2004, having joined the firm in 1994
after spending approximately 10 years at Salomon Brothers.
Robert Wolf is the Chairman & CEO of UBS for the Americas. Ferri joined the UBS Investment Bank in 1998
as Director of Equity Compliance.
Joseph Scoby’s first task as a member of the Group Executive Board will
be to review and refine our risk processes