Bloomberg reports that the units 'have gone through a number of significant changes that have substantially strengthened and more closely aligned their business models', Andrea Orcel, 50, head of the investment bank, said in a 19th November memo to employees obtained by Bloomberg. The contents were confirmed by UBS. Vogelgesang will work with Chris Murphy and George Athanasopoulos, who will lead the new unit, while looking for other roles in the bank.
The reorganization comes amid regulatory probes into possible rigging in the foreign-exchange markets in the U.K., the U.S., the European Union and Switzerland. UBS scaled down its rates and credit businesses last year to boost profitability at the investment bank. Credit Suisse is also setting up a new division to combine rates, foreign-exchange and commodities operations.
'The integration is not a change in strategy, rather a natural evolution of what we are trying to achieve', the UBS memo said. The foreign exchange and precious metals and the rates and credit units 'have performed well” and “will continue to outperform against our strategic objectives'.
UBS has been conducting an internal review of its foreign exchange business since June. The bank said last month it has been among financial institutions to receive requests for information from authorities and is cooperating with the probes.
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image: © Martin Abegglen