UBS retail-products executive takes leave
Michael Weisberg, the head of products and services for UBS AG's U.S. and Canadian wealth management businesses, has taken an indefinite leave of absence, a UBS spokeswoman confirmed.
Michael Weisberg, the head of products and services for UBS AG’s U.S. and Canadian wealth management businesses, has taken an indefinite leave of absence, a UBS spokeswoman confirmed.
His departure was announced internally this week, as the Zurich, Switzerland-based bank announced a second-quarter net loss of 1.4 billion Swiss francs ($1.3 billion) and as rumors swirled that the firm’s U.S. brokerage business was likely to be reorganized.
Mr. Weisberg’s leave is due to personal, not performance-related, issues, the spokeswoman said.
Mr. Weisberg, who is in his late 30s, has been on the managing board of UBS’s global wealth management and business banking group since 2005.
His responsibilities have been assumed by James Hausmann, a fixed-income specialist who has run transaction products at the New York-based U.S. wealth management group since 2005.
Mr. Hausmann joined one of UBS Wealth Management’s predecessor firm, PaineWebber, in 1991.
Last quarter, UBS lost about 820 financial advisers in the Americas, leaving it with under 8,000 brokers.
More than $5 billion of assets were drained from its U.S. wealth management business during this time.
Although all large brokerage firms have experienced broker and client erosion, UBS’s problems have been exacerbated by some $40 billion of trading losses in 2007 and 2008 at its U.S. hedge funds, and by charges from the U.S. government that it helped wealthy American clients evade taxes. UBS last week announced an agreement in principle over the tax issue with the Internal Revenue Service.
Globally, the firm experienced outflows of 17.1 billion Swiss francs ($16.1 billion) from its asset management businesses last quarter and 16.5 billion Swiss francs ($15.5 billion) from its non-U.S. private banking and brokerage businesses.
UBS’s wealth management woes have triggered expectations that the Swiss bank could sell its U.S. brokerage business or change management. Robert McCann the former president for global wealth management at Merrill Lynch & Co. Inc. of New York, has been negotiating to become head of UBS Wealth Management Americas or possibly buy all or part of the business, according to sources and published reports.
Karina Byrne, a UBS spokeswoman, declined to comment on the reports.
Marten Hoekstra continues to be in charge of UBS Wealth Management Americas and UBS AG’s new chief executive, Oswald Grubel, has in the past affirmed his commitment to the U.S. business, she said.
In a conference call with analysts earlier this week, Mr. Grubel denied a report that UBS will retain the U.S. businesses for at least three years.
Mr. Hoekstra last month reorganized the firm’s U.S. sales structure, shrinking it from eight to three regions. The bank is also in the process of selling or closing dozens of branches.
The firm’s new Northeast region is run by Jason Chandler, former head of the New York City metropolitan region.
Its West region is headed by Michael Schweitzer, who had been Mr. Weisberg’s deputy in products and services.
Its new Central region is run by David McWilliams, a 30-year veteran of Merrill Lynch who joined UBS earlier this year.
Learn more about reprints and licensing for this article.
