About a month and a half ago someone told us, “the UBS investment bank is f$%^ed.“It’s been coming true ever since and today, some startling news hit that makes it looks like that’s even more of a reality.
A huge round of 5,000 layoffs were announced in July. The bank officially started sacking people a couple of weeks ago. More are expected.
And today, in case you haven’t heard the news, a rogue trader named Kweku Adoboli recently cost the ibank $2 billion (there was word that his trade had something to do with the Swiss Franc, which was a great trade until recently, when the Swiss government decided to intervene in the currency to bring it closer to the Euro).
Here’s what a UBSer tells us about the effects of that $2 billion loss. They say, “A bunch of employees that were staying put anticipating a bonus just got sacked in the nuts.”
That suggests that people will leave for other job opportunities before bonuses are paid out in March.
“There has to be a change in senior management,” they say.
The trader’s boss already resigned over the news. The next guy to look to might be Carsten Kengeter, the firm’s head of the investment bank.
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