UBS has brought back several employees who were put on leave when it unveiled a drastic pullback from fixed income last week, and more could follow, sources familiar with the situation have told Reuters.
The news agency reports that UBS has already brought back a small handful of employees who were on leave, two people familiar with the matter said.
It could also ask more to return or rehire some where needed, said three other sources, including UBS insiders, adding that some desks were now too thinly staffed to operate properly, if they were desks the bank ultimately wanted to keep going.
Reuters also reports that UBS's German subsidiary is being investigated by local prosecutors over allegations of helping clients to evade tax, putting it in another tangle with European tax authorities.
Bank staff are suspected of having helped clients transfer money to Switzerland to hide it from the local tax authorities, the spokesman for prosecutors in the German city of Mannheim, Peter Lintz, told Reuters.
UBS said that an internal probe had revealed no evidence of wrongdoing, and stated: 'We offer customers no support to acts intended to circumvent their tax obligations'.