Bloomberg reports that the bank's board was to meet in New York Wednesday to consider a reorganization of the unit that will include cuts centered on the fixed-income operations that Kengeter has been responsible for since 2008, said the people, who asked not to be identified before the matter is made public. An announcement may come when UBS reports third-quarter earnings on October 30th, they said.
Chief Executive Officer Sergio Ermotti, 52, is overhauling the bank as Swiss regulators pressure UBS and Credit Suisse Group AG to boost capital and scale back their trading and investment-banking operations. UBS is already in the process of cutting risk-weighted assets at the investment bank by more than half from September 2011 levels, mostly in fixed income. Additional job cuts are also on the way, including about 400 staff, or 10% of the investment bank’s front-office employees in Europe, people familiar with the matter said last week. The bank announced plans last year to eliminate 1,600 positions at the unit.
'It’s good that they’re not sitting on their hands', said Christopher Wheeler, a banking analyst at Mediobanca SpA in London. 'You’ve got to keep responding to the changing market environment'.
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