UBS cuts under way as Adoboli says he is sorry

UBS is cutting its investment banking division as the trader accused of a $2.3bn (£1.5bn) fraud yesterday said he was “sorry beyond words”.

The bank’s cull represents between five and 10 per cent of the posts within its advisory arm and is part of the 3,500 job cuts announced in August. It is not directly related to the losses resulting from a “rogue” trade.

Yesterday Kweku Adoboli apologised through his lawyer, Patrick Gibbs, for the “consequences of his disastrous miscalculations”. He did not enter a plea at City of London Magistrates and was remanded in custody until a hearing next month.

Meanwhile Oswald Gruebel, the chief executive of UBS, is fighting to retain his job at the bank as directors spend three days in meetings in Singapore. UBS declined to comment last night on whether Gruebel’s position was under discussion.

Christian Stark, analyst at Cheuvreux, said the departure of Carsten Kengeter, investment banking chief executive, would be the “best signal” UBS could give.

But Leigh Harrison, head of global equities at UBS investor Threadneedle, said there was no need for chief executive Oswald Gruebel to step down in the wake of the scandal.