After losing $2.3 billion and a CEO to a rogue trading scandal in September, UBS has scrambled to get back on track. One of the first things the company did to move forward was elect Sergio Ermotti interim CEO.Now, according to the Wall Street Journal, he’s going to keep the position permanently, along with all the headaches that come with it.
Here are a few of them (via WSJ):
- According to Morgan Stanley estimates, UBS has core Tier 1 capital of 33.1 billion francs and risk-weighted assets on a Basel 3 basis of 360 billion francs, implying a core Tier 1 ratio of 9.2% — its target, on the other hand is a ratio of 13%.
- Morgan also thinks that, to be able to grow and pay dividends, UBS will need to shed 130 billion francs of risk-weighted assets while keeping its 12% return on equity.
- And then there’s something that can’t easily be changed with the right trade or sales pitch— staff morale is in the dumpster.
Sounds like there’s still a lot of work to do.
Learn more about Ermotti: This “Impeccably Dressed” Interim UBS CEO Might Become Oswald Gruebel’s Permanent Replacement