A dispute over hiring in Asia between UBS and Deutsche Bank resulted in UBS being left out of a rights issue from Deutsche Bank earlier in 2017, according to a story from the Financial Times.
Tensions developed after UBS hired Deutsche Bank’s most senior wealth management executive in Asia, Ravi Raju, in October 2016.
UBS had also reportedly tried to hire more Deutsche staff after poaching Raju, with the FT reporting that some UBS staff members had told Deutsche employees that the German lender “might not be there in a few years’ time,” alluding to persistent concerns from some in the industry about the health the bank.
UBS was subsequently excluded from the list of eight banks underwriting this year’s rights issue, with people with inside knowledge told the FT that Deutsche executives had “sin-binned” UBS as a result.
An insider also told the paper that the two banks were now working to improve relations.
Earlier this month Deutsche Bank announced it was planning to hire 50 new staff members in its Asian wealth management team, in response to having lost senior executives. Meanwhile, UBS promised to double its China team between 2016 and 2021.
Neither Deutsche Bank nor UBS has commented on the Financial Times’ story.
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