Will replace AI investment bankers

Kurer sees UBS as an investment bank

dpa-afx Zurich - The designated President of the UBS Board of Directors, Peter Kurer, does not want to give in to the demand for the investment banking of the major Swiss bank to be outsourced. There are significant synergies between investment banking and asset management, said Kurer of the "Neue Z├╝rcher Zeitung". Many wealthy clients also used the services and products of the investment bank, which had been hit by the credit crunch. Without an investment bank, UBS would not have the same importance, which in the long term would also be negative for the Swiss financial center, said Kurer.
The previous UBS chief lawyer no longer wants to cross-subsidize the investment bank with money from the asset management business. The investment bank must generate its own capital needs. She had speculated on junk mortgages in the United States. For this reason, CHF 40 billion (EUR 25 billion) had to be written off so far. Kurer, who is to become Marcel Ospel's successor at the UBS general assembly on April 23, wants to change the organization of the big bank as a result of the credit crisis. He proposes to abolish the three-person presidium, the actual power center under the previous chairmanship of Ospels. Kurer wants to replace this level between the board of directors and the group management with a strategy and a risk committee with both internal and external, neutral board members.