Analyst: New UBS chief may sell PaineWebber

Oswald Grubel, the new chief executive of beleaguered UBS AG will likely will take a “fresh, hard look” at the Swiss banking giant’s retail-brokerage business.
FEB 27, 2009
By  Bloomberg
Oswald Grubel, the former head of Credit Suisse Group, who was named as the new chief executive of beleaguered UBS AG yesterday, likely will take a “fresh, hard look” at the Swiss banking giant’s retail-brokerage business, according to an industry analyst. “It’s still too early to tell what he will do, but there are indications that he wouldn’t be afraid to sell the unit if he thought that’s what needed to be done,” said Alois Pirker, a senior analyst for Boston-based Aite Group LLC. Mr. Grubel, 65, spent much of his career at Credit Suisse Group and was chief executive there from 2003 to 2007. He had been retired until now. Despite its vast resources, Credit Suisse didn’t acquire a large retail-brokerage firm in the U.S. comparable to UBS’ purchase of PaineWebber Group Inc. of New York in 2000, Mr. Pirker noted. What’s more, he pointed out, Credit Suisse of Zurich sold off its insurance division, Winterthur Swiss Insurance (also of Zurich), in 2006, after it had been criticized as a poor fit for Credit Suisse, much the way the former PaineWebber unit is now viewed by some as a questionable fit for Zurich-based UBS. “PaineWebber isn’t Grubel’s legacy,” Mr. Pirker said. “He can take a fresher approach and analyze it more closely. The question is, does UBS want a retail-brokerage business?” Mr. Pirker said. In a memo sent to UBS staff members yesterday, Mr. Grubel said that changes would be coming to the troubled bank, which last week settled a U.S. criminal tax evasion inquiry by agreeing to pay $780 million to American authorities and to turn over the identities of private-account holders to the United States. “Given the current business climate in many of our markets, further substantial cost reductions will be inevitable,” he wrote in the memo.

Latest News

RIA M&A stays brisk in first quarter with record pace of dealmaking
RIA M&A stays brisk in first quarter with record pace of dealmaking

Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.

New York Dems push for return of tax on stock sales
New York Dems push for return of tax on stock sales

The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.

Human Interest and Income Lab streamline workflows for retirement-focused advisors
Human Interest and Income Lab streamline workflows for retirement-focused advisors

The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.

Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls
Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls

Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.