More UBS execs to go in shake-up

SEVERAL senior executives from UBS’ risk management division are set to be axed in the next few days as the bank tries to move on from the $2.3bn (£1.5bn) “rogue” trading scandal.

Carsten Kengeter, the head of the investment bank, is seeking to regain the initiative after criticism of UBS for its lack of communication during the crisis and its lack of decisive decision-making.

City A.M. understands more risk managers are expected to leave following the resignation of John Hughes, Kweku Adoboli’s boss, and chief executive Oswald Gruebel.

“Carsten has got to open up to investors and the public and get back on the front foot,” said one source close to the bank.

Kengeter is under pressure to bring forward the publication of a report into how the loss emerged, which could lead to the investment bank being heavily shrunk.

Executives in Switzerland want the division to adopt a less risky approach and focus more on advisory work, which could lead to the re-introduction of the Warburg name.

UBS said it did not comment on “speculation” and said more details of its risk strategy will be revealed at its investor day on 17 November.

About 3,500 posts are being cut across the bank, including in risk management, as part of a SwFr 2bn (£1.41bn) a year cost-cutting drive announced in August.