UBS, Europe’s biggest bank by assets, may split its investment banking and money management operations into two separately traded companies, reports SonntagsZeitung, the Swiss newspaper, via Bloomberg. The bank, based in Zurich, may also take another $5bn-$8bn in writedowns over losses in the US subprime mortgage market, the newspaper said. UBS on Dec 10 announced $10bn of writedowns and said it would raise $11.5bn from Singaporean and Middle East investors. Under the plan to split the bank, supporting units needed by both the investment banking and asset management companies would form a joint venture, the newspaper said via Bloomberg. Separately, the FT reports, UBS is trying to persuade investment bankers to stick with the company by allowing them to sell some of their share-based bonuses after just one year.

This entry was posted by Gwen Robinson on Monday, January 14th, 2008 at 4:58 and is filed under Capital markets. Tagged with ubs. Edit this entry.