Top management are revolting.
Rifts among top UBS managers are hampering CEO Sergio Ermotti’s efforts to make big cutbacks, especially in investment banking, according to senior sources both inside and close to the bank.
Reuters reports that while 52-year-old Ermotti has been scarcely visible outside the bank since taking over after Oswald Gruebel quit a year ago over a $2bn trading scandal, sources in the bank say he is busy trying to marshal support for more forceful restructuring.
‘Top management isn’t unified at all, and that is now (Chairman Axel) Weber and Ermotti’s big challenge’, one top UBS banker told Reuters.
‘Ermotti hasn’t consolidated his hold on power and is by nature more collaborative than Gruebel was, which has inadvertently fostered infighting’, another UBS top banker said.
One banker told Here Is The City: ‘In truth, Ermotti is doing a difficult job very well. He remains relatively popular with employees and his vision for the bank’s future is generally understood and has been accepted. It will never be possible to carry everyone with him, however, especially those who have concerns about their own future in Ermotti’s brave new world’.
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