UBS 'needs a fundamental overhaul'

4 April 2008

Swiss banking giant UBS might be facing a wide-ranging corporate overhaul, Bloomberg reports.

The firm's former president, Luqman Arnold, requested in a letter to board member Sergion Marchionne that the two men meet before UBS' annual meeting later this month.

According to a further report in the Wall Street Journal, Mr Arnold is to advise that the bank sells off its asset management unit.

UBS has suffered the biggest writedowns of all banks in the wake of the collapse of the US sub-prime mortgage sector - the financial crisis that has caused months of turbulence on the global markets.

"There is an urgent requirement for effective and relevant leadership of UBS's supervisory board [and] a clearer and more focused corporate strategy," Mr Arnold commented.

"[UBS needs] a fundamental overhaul of risk discipline and more open and transparent communication."

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