Wuffli Out at UBS
Is Peter Wuffli another victim of the subprime debacle? Losing a little over $100 million in their Dillon Read unit was unfortunate, but the losses for Bear Stearns hedge fund clients were far worse. The bigger problem is that Wuffli signed off on moving their very profitable prop traders out of the bank and putting them into the Dillon Read vehicle. Hindsight is everything, but killing off a steady billion dollars in annualzied trading profits is a disaster. And now they have nothing.
Wuffli’s departure might not be a surprise to the unemployed traders.
In the early hours of July 6, UBS surprised just about everyone by announcing that the group chief executive would “relinquish all of his functions at UBS and leave the bank.” Wuffli will be replaced by Marcel Rohner, the deputy CEO and chief of UBS’s most valuable business, private banking (or Global Wealth Management, as it is officially known). Business Week
Hopefully the UBS traders land on their feet soon, they were money.
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