UBS Investment Bank co-head Carsten Kengeter leaves CEO Sergio Ermotti's top team to lead the winding down of fixed-income activities that are no longer profitable due to stricter capital rules on riskier business introduced after the financial crisis.
'If they succeed in selling the assets in the investment bank at a profit, they will be involved in the payout pool', the newspaper said.
One banker told Here Is The City: 'The fact that Kengeter is still at UBS defies belief. The investment bank has struggled under his watch, and that $2.3bn unauthorized trading affair occurred during his time at the helm. If this isn't a case of rewarding failure, I don't know what is'.
In the meantime, Reuters also reports that JPMorgan Chase lost a bid on Monday to dismiss a U.S. regulator's lawsuit accusing the bank of misleading Fannie Mae and Freddie Mac in their purchase of billions of dollars worth of risky mortgage securities.
U.S. District Judge Denise Cote in Manhattan pared down parts of the lawsuit filed by the Federal Housing Finance Agency but allowed other allegations in the case to move forward.