UBS and Bank of America facing calls for break-up

Chisel Split Ice

The urge to de-merge ?

Activist investor Knight Vinke said UBS needs to 'radically' shrink and should look at spinning off or merging its investment bank, stepping up its criticism of the bank.

Reuters reports that Knight Vinke has been calling for change at UBS for two years, saying its investment bank is unviable and should be spun off so the bank can focus on its wealth and asset management businesses.

Two letters sent to the bank in recent weeks by Knight Vinke Chief Executive Eric Knight show that view remains, based on the investment bank continuing to receive 'a huge funding subsidy' from the rest of the bank.

In the meantime, the New York Post reports that Bank of America boss Brian Moynihan is fielding more calls about breaking up the bank after its latest results lagged rivals.

During a call Wednesday to discuss results, two analysts asked Moynihan about a shareholder proposal that would split the bank. BofA tried to prevent the proposal from being put to a vote at its upcoming May 6 annual meeting, but regulators shot it down.

UBS still needs to get rid of investment bank - activist investor

Bank of America facing breakup calls after results fall short

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