Gruebel bids to overhaul investment banking arm

UBS chief executive Oswald Gruebel will this week ask directors to back plans for a deep overhaul of its investment banking division.

The board begins a two-day meeting in Singapore tomorrow although it is understood the sessions were arranged before the “rogue” trading crisis broke.

UBS is under pressure to scale down, ringfence or even split off its risky investment banking business from its core wealth management unit in order to shield private clients. One source said Gruebel will scale back proprietary trading and fixed income but will not do away with them completely.

Gruebel has vowed to “bear the consequences” of the loss but yesterday faced unconfirmed reports he will be subject to a vote of confidence at the board meeting.