The GIC Wealth fund, the biggest shareholder of UBS with a stake of 6.44%, met with UBS CEO Oswald Gruebel this week to discuss the rogue trading scandal, according to the FT.
Clients were concerned because despite Gruebel’s insistence last quarter that, “We have no undue risk in our positions… I’m pretty convinced that we have one of the best risk managements in the industry,” the firm’s risk management system failed to catch a $2.3 billion hole that will wipe out the savings effects the bank planned to benefit from after laying off 3500 employees.
The GIC Wealth fund’s comment on the scandal, according to the FT:
“[We] discussed the alleged fraudulent trading that led to the large financial loss for UBS. GIC expressed disappointment and concern at the lapses and urged UBS to take firm action to restore confidence in the bank.”
“GIC’s view of UBS’s fundamental strength as a well capitalised bank with a strong private wealth management franchise remains unchanged.”
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