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’From deposit stashing to repo lending at UBS
UBS announced lacklustre results on Tuesday, saying it expected further weakness in investment banking in the first quarter.
But the bank also provided details of some interesting underlying trends at the bank,
Lloyd C. Blankfein wants YOUR feedback
Well, not yours, obviously. But random market professionals in the City of London who in recent days have been contacted by the mighty Goldman Sachs.
From: Lloyd C. Blankfein [mailto:gsbrandsurvey@ny.email.gs.com]
Sent:
Snap news
Breaking pre-market news on Thursday,
- UBS removes chief risk officer after less than a year in the job — statement.
- Kingfisher reports better than expected Q3 results; sells more BBQs in one week in September than in the whole of June – statement and fact sheet.
Julius Baer on steroids? [updated]
The investment banking bloodbath continues.
UBS has just announced plans to exit or significantly downside several businesses within its IB division and axe around 2,500 jobs. That’s roughly 10 per cent of the workforce.
The City of London job cull…
… shows no signs of letting up.
The latest casualty is Altium Securities.
We are also picking up rumours that Religare is considering “strategic options” for its UK operation, which owns Hichens, Harrison,
Snap news
Breaking pre-market news on Tuesday,
- UBS names Sergio Ermotti as CEO; Axel Weber to become chairman a year early — statement.
- John Pluthero to step down as CEO of Cable & Wireless Worldwide after £443m half year loss — statement and statement.
Credit Swiss and 13,000 redundancies
Later this month embattled UBS will hold its big annual investor day in New York at which interim chief executive, Sergio Ermotti, is expected to spell out his plans for the troublesome investment banking arm.
How ‘Delta One’ really works
One thing we’ve learnt about Delta One is that it’s head-scratchingly, mind-bogglingly tricky to explain.
And exactly how the division makes money, outside of the fees it charges investors is even harder to work out.
The pictorial UBS beat
UBS beat profit forecasts with their Q3 results on Tuesday, coming in with a SFr 1.02bn ($1.13bn) of net profit.
In the absence of unauthorised gains to offset them, unauthorised (er) losses from the trading scandal cost the group SFr 1.85bn.
Snap news
Breaking pre-market news on Tuesday,
- UBS Q3 net profit solid at CHF980m despite trading scandal – statement.
- BP Q3 RC net profit down 3.7 per cent at $5.14bn on lower output – statement
- Novartis says Q3 pharma sales $8.159bn, cuts 2,000 positions – statement.
Snap news
Breaking pre-market news on Friday,
- Jupiter says assets under management proved resilient in face of significant declines in world equity markets — statement.
- Asos confidence of meeting market forecasts — statement.
UBS trade execution(s)
RTRS-UBS SAYS LEADERSHIP CHANGE IN UBS INVESTMENT BANK’S GLOBAL EQUITIES BUSINESS
RTRS-UBS SAYS FRANCOIS GOUWS, YASSINE BOUHARA, CO-HEADS OF GLOBAL EQUITIES, RESIGNED FOLLOWING RECENT UNAUTHORIZED TRADING
Ka-Pow! Deutsche hit by the VAT man
As with UBS, there’s more than meets the eye to this Tuesday trading update from Deutsche Bank.
And we’re not talking about the missed €10bn pre-tax profit target (that’s no surprise) or another round of redundancies (again no surprise).
Rise of the central execution desk
The UBS rogue-trading scandal has shone a light on the way banks have transformed their trading divisions in the last decade.
Simply put, trading is not what it used to be.
With pressure to cut so-called “proprietary desks”
UBS flatters to deceive
UBS expects to report a modest net profit for the Group and positive net new money in its wealth management businesses for the third quarter of 2011
What a relief. In spite of that “unauthorised” trading loss UBS is still going to make a profit. However,
Snap news
Breaking pre-market news on Tuesday,
- Dexia starts work on bad bank for its non-strategic asset portfolio — statement.
- UBS expects to report modest net profit for third quarter; benefits from Sfr1.5bn of own credit gains — statement.
Snap news
Breaking pre-market news on Tuesday,
- Eurozone officials working on sovereign debt TARP for Europe — report.
- UBS committed to keeping US brokerage — report.
- Daily Mail & General Trusts warns full year profits will be at the low end of expectations — statement.
Thank you and goodnight – Grübel’s final address
Dear colleagues,
I have handed in my resignation as CEO to the Board of Directors today. That it was possible for one of our traders in London to inflict a multi-billion loss on our bank through unauthorized trading shocked me,
Brooding over Gruebel
“Oswald Grübel has been asked to leave,” a source close to the UBS board has told Bilan. “The discussion has now turned to possible successors. Once a decision is made, the departure of the CEO will be announced.”
UBS rogue trade – Kengeter memo
In which the CEO of UBS’s embattled investment banking arm urges his staff to move “forward forcefully and decisively” and vows to “deal appropriately with those individuals who were responsible for significant operational and management supervision lapses.”
UBS rogue trade – details of the fictitious trades
Sunday’s statement from UBS, in which the bank reveals the loss from ‘unauthorized’ trading in various index futures (over the last three months) was in fact $2.3bn.
On September 15, 2011 UBS announced that it had discovered unauthorized trading in its Investment Bank.
[Something for the weekend] Just what Dr Vickers ordered
Sir John Vickers is laughing all the way to the bank(ing commission). As a movie plot, the publication of his report, immediately followed by a spectacular demonstration of why we needed it, is much too far-fetched.
UBS trading losses – the regulatory response
Notice anything unusual about this press release hot off the regulatory press?
UBS trading losses: FSA and FINMA to launch investigation
The Financial Services Authority (FSA) and the Swiss Financial Market Supervisory Authority (FINMA) are launching a comprehensive independent investigation into the events surrounding the trading losses incurred by UBS AG in its London operations.
Charges in UBS trader case
City of London police statement:
At 12.56hrs (September 16) the CPS authorised the charging of Kwaku Adoboli, from Bethnal Green. City of London Police has since charged the 31-year-old with fraud by abuse of position and false accounting.
Some friendly advice from Goldman Sachs
Oswald Grübel — shrink your investment bank!
UBS’s investment bank produced outsized losses in 2008 and 2009; consequential perception of UBS’s riskiness substantially impacted its private banking business,
The curse of Delta one strikes UBS
This is a snapshot of the Linkedin page of UBS equity trader Kweku Adoboli, the man the FT understands was arrested in connection to the €2bn unauthorised UBS trade, as seen through FT Alphaville reporter Izabella Kaminska’s Linkedin profile:
UBS rogue trader – Grübel memo
Dear colleagues,
We regret to inform you that yesterday we uncovered a case of unauthorized trading by a trader in the Investment Bank. We have reported it to the markets in line with regulatory disclosure obligations.
UBS rogue trade – call the cops
*UBS SAYS ARREST IN LONDON RELATED TO TRADING LOSS
*LONDON POLICE SAYS MAN ARRESTED ON SUSPICION OF FRAUD
*LONDON POLICE SAY HAVE ARRESTED 31-YEAR OLD MAN IN LONDON ON SUSPICION OF FRAUD
* ARREST WAS MADE AT 0230 GMT IN CENTRAL LONDON – CITY OF LONDON POLICE,
UBS rogue trade – the wider costs
RBC’s highly rated banks team have already taken a stab at estimating the impact of UBS’s rogue trade.
Loss in context of numbers
Assuming the loss is not revised at CHF1.7bn this is 3.4% of tangible book value end Q2 2011 and CHF0.35ps.
UBS rogue trader alert
RTRS-UBS SAYS A TRADER OF INVESTMENT BANK HAS CAUSED LOSS ESTIMATED AT $2 BLN
RTRS-UBS SAYS POSSIBLE THAT BANK WILL THEREFORE POST Q3 LOSS
RTRS-UBS SAYS LOSS DOES NOT INVOLVE CLIENT POSITION
RTRS-UBS SHARES 8.5 PCT LOWER AFTER SAYS COULD POST Q3 LOSS AFTER UNAUTHORISED TRADING BY A TRADER
Further details as we get them.