SWITZERLAND - UBS has announced a major reshuffle of its senior management following the recent market turbulences.
Newly-appointed group chief executive Marcel Rohner takes over as CEO and chairman of the investment bank as of today. The current holder of this position, Huw Jenkins, will become his senior adviser.
Group chief financial officer Clive Standish is due to retire so executive vice-chairman Marco Suter is taking over.
This decision follows calculations which predict pre-tax losses for the UBS group in the third quarter of between CHF600m (€360m) and CHF800m "mainly related to deteriorating conditions in the US sub prime residential mortgage market," UBS said in a statement.
"These events have led to the management changes announced today," Rohner commented. He had been appointed CEO in a surprise move in July, taking over from Peter Wuffli.
"UBS operates on the principle that management is accountable to shareholders."
The statement issued today also noted changes in the investment bank will see "overall staff numbers fall by about 1,500 by the end of the year".
Rohner said he will also "accelerate already-planned changes to the firm" such the integration of Money Markets, Currencies and Commodities (MCC) into Fixed Income within the Investment Bank.
"With these changes and by properly absorbing the lessons of this quarter, we will become a stronger bank," Rohner said.
Results for the third quarter 2007 will be announced on October 30.