Major events at UBS- Sale in the works now?

what’s to pile on about? 

When they announced the creation of the Americas divsion for the US brokerage biz seemed like selling it would be a possibility down the road.   In short oder they did sell some of the biz to Stifel.

[quote=burtonfinancial1] Major events at UBS and rumors accelerating around a sale?

Consider this list/timeline of recent events…and this is only a partial list!

1) RIF in April-  cleaned up P&Ls, cleared out low producers

2) Stifel acquisition…nearing close date soon… clearing out small offices and more small producers

3) DOJ/Swiss Govt. Tax Settlement done in the last week. …finally, major issue out of the way
4) Swiss Govt. pulls it’s stake in UBS: The Swiss state sold 332.2 million shares to institutional investors, the government said in a statement Thursday. Including a $1.7 billion cash payment the state is getting.

Sale of WMUS or breakup ?  Who are the likely suitors ?  Timeline looks reasonable, with key issues out of the way (DOJ and Swiss Govt ownership).

I ownder if the sale to Stifel was a good test to see if they could jsut sell off branches successfully.  A little unorthodox, but do you think they would sell each market to the highest wirehouse bidder?  Again, not typical, but maybe they tested it with the smaller offices.

Potential Suitors:

JPM
Deutsche Bank
Credit Suisse -   long shot at best
HSBC -  would be horrible in my view - HSBC screws up everything they buy in the U.S.
AMP (Ameriprise)… yes… it could happen, they want to acquire something BIG and have the $$

Thoughts?

[quote=B24]I ownder if the sale to Stifel was a good test to see if they could jsut sell off branches successfully.  A little unorthodox, but do you think they would sell each market to the highest wirehouse bidder?  Again, not typical, but maybe they tested it with the smaller offices.[/quote]

I think there’s something there as well. I could see UBS sold off in 2 or 3 chunks.

JPM or DB taking the big high net worth offices in major markets.

AMP, Ray Jay, RBC or someone like them taking the bottom half or 1/3rd.

Michael Weisberg’s indefinite departure was announced internally this
week, as the Swiss firm deflected rumors over its future leadership

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.

I don’t see RJ getting involved…

JPM seems logical, but does Dimon make another acquisition after WAMU,and BEAR? That is a lot to integrate… But they make sense only big bank lacking a stand-alone brokerage business.



Or does a regional scoop up a couple of offices in its region and they just split up the whole thing, no more UBS, sold off in chunks to highest regional bidder.

What does  RIF stand for?

legal mumbo jumbo for “Reduction in Force”

UBS upped their transition package this week.  It’s up to (back up to) 250%.  There is a rumor the folks transitioning to UBS are bringing fewer assets than folks leaving UBS.  It feels logical but you never know if that’s just management pushing their own scoop.  I’m glad I got out of there just in time.  90% of the top producers in my former branch came on in the past two years.  My calculator isn’t smart enough to figure out how that can be profitable.  And don’t expect to be rewarded for sticking it out.  When I left the good accounts were called by the newly recruited advisors.  Why risk funding the “deal” from the branch for the folks who don’t hit their numbers?

[quote=NOVA]UBS upped their transition package this week.  It’s up to (back up to) 250%.  There is a rumor the folks transitioning to UBS are bringing fewer assets than folks leaving UBS.  It feels logical but you never know if that’s just management pushing their own scoop.  I’m glad I got out of there just in time.  90% of the top producers in my former branch came on in the past two years.  My calculator isn’t smart enough to figure out how that can be profitable.  And don’t expect to be rewarded for sticking it out.  When I left the good accounts were called by the newly recruited advisors.  Why risk funding the “deal” from the branch for the folks who don’t hit their numbers?[/quote]

Good update and I’ve heard the same… this would make UBS now only 90% of T-12 behind the current leading offer for tier 1 producers heading into Merrill Lynch who is owning the top spot in recruiting deals by a long shot from a $ standpoint.  Jeez, even MSSB is doing 240% for the same level of production which is pretty darn close to what UBS may be offering top FAs. Why anyone would go to UBS now, at least in the wires, is unimaginable.  If you’re AT UBS, news that they’re now paying your replacement 250% (all in) is nothing to celebrate.  UBS is desperate.  The firm out-recruited the entire wirehouse world from late 08 into Q1 09’, backed off in Q2 and has lost a load of great people since. They have slaughtered their branch P&Ls funding big deals just to fill emptying seats and have lost many big producers who owed the firm nothing at the same time. You can’t do that very long and sustain any decent level of profitability.

BurtonFinancial:



You are way off on this one. He is out on disability with a medical condition that none of us would want to have. I do not know if he will end up being able to come back or not.

[quote=burtonfinancial1]

5) September/October RIF, yes another one is going to happen. Will take another chunk of LOS 5+ producers and light P&Ls off the rolls.

[/quote]

All 5th quintile folks or just some?

BurtonFinancial:

You are way off on this one. He is out on disability with a medical condition that none of us would want to have. I do not know if he will end up being able to come back or not.

UBS not for sale.   Ozzie said it.   (after Oz fest) 

McCann was one of several horsemen that was responsible for Merrill’s
demise…he has NEVER been an advisor.  I doubt he could close a
screen door, not to mention a multi-million dollar household.  The
entire industry (wirehouses) is only interested in top management, not
the advisors and certainly not the client.  BTW, the ultra HNW
initiative at UBS has been a total train wreck…poaching wealth
management offices and shifting the revenue.  They will have a RIF
in several weeks with only client facing personnel affected…it won’t
be fun.  Hundreds of CSA’s gone with no corresponding cut in
Weehawken.  UBS should sell the core offices to a true wealth
advisory firm, whomever that may be.  They do not need the
Swiss.  They have a small window in my oipinion to benefit from
the recent strength in the stock and sell the US WM unit.  If
not,  major defections and net new $$ outflows greater than what
they have experienced recently.  I vote for Sontag…Hoekstra is
more out of touch than a nun at a sinagogue.

Very interesting development here on McCann…

http://www.ft.com/cms/s/0/3214e498-90e9-11de-bc99-00144feabdc0.html?referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058&nclick_check=1

He’s suing Merrill/B of A now over their efforts to prohibit his employment elsewhere

wow  

secretknowledge… i call bullsihitt on Michael, the whole upper mgmt tier of UBS Americas is running very very I repeat very scared… they are a bunch of chicken siht  a holes and they are running with thier head up thier butts…they are very adept at this.!

P.S. i have had probably worse mICHAEL AND NOBODY GAVE ME A PARDON!!!

You are still bitter at being riffed aren’t you.



When a person goes out on disability it is not a pardon. When you go out with what he has at that young of an age you say a prayer for the person and say thank god that was not me or my family.



All people and strategy at UBS are not bad. Even though I do not agree with a large number of things that they are doing, I realize that it is not everyone at the firm who caused the issues. Decisions continue to be made at the firm that are inconsistent and not in the best interest of the firm   and that is sad/frustrating if you still work here. However, this is a case of someone going on medical disability for a very serious reason and you are WAY OFF BASE WITH YOUR COMMENTS.

You are still bitter at being riffed aren’t you.

When a person goes out on disability it is not a pardon. When you go out with what he has at that young of an age you say a prayer for the person and say thank god that was not me or my family.

All people and strategy at UBS are not bad. Even though I do not agree with a large number of things that they are doing, I realize that it is not everyone at the firm who caused the issues. Decisions continue to be made at the firm that are inconsistent and not in the best interest of the firm   and that is sad/frustrating if you still work here. However, this is a case of someone going on medical disability for a very serious reason and you are WAY OFF BASE WITH YOUR COMMENTS.

McCann comin with blank check  and freedom.

Ab I hope UBS is paying you dearly for all of the McCann rah-rah and UBS kool aid drinking that you’re doing.   

Betsy you’re killin me here.    At first I thought that you meant what you wrote.   But then I realized that no one that works at UBS is naive enough to believe what you said.    You have truly mastered the art of sarsasm!!!

Ab I hope UBS is paying you dearly for all of the McCann rah-rah and UBS kool aid drinking that you’re doing.   

[quote=BeenThere]Betsy you’re killin me here.    At first I thought that you meant what you wrote.   But then I realized that no one that works at UBS is naive enough to believe what you said.    You have truly mastered the art of sarsasm!!!

[quote=Lew Ashby] [quote=BeenThere]Betsy you’re killin me here.    At first I thought that you meant what you wrote. But then I realized that no one that works at UBS is naive enough to believe what you said.    You have truly mastered the art of sarsasm!!!

UBS has good marketing materials.  The PACE brochures, the online proposal system, etc.  The back office processes are terrible, the investment platform isn’t unique is any positive way, the firm marks up bonds way too much.  And the trust company is disaster.  There is no reason to ever go to UBS.  Plenty of reasons to leave.  Moving is not as difficult as getting a “non-standard” seminar approved by the idiotic marketing resource desk. 

Didn't use the Lehman Bros structured products-- nice try borei.  Will only do FDIC-backed CD's.  By the way, stay out of my bushes, you perv!

That stellar rep UBS has helps too, eh Lew? Tax fraud. Three presidents in two years. Massive, over sized losses. That koolaid is tainted, drink it at your own risk.

[quote=borei]



That stellar rep UBS has helps too, eh Lew? Tax fraud. Three presidents in two years. Massive, over sized losses. That koolaid is tainted, drink it at your own risk.



[/quote]



Name one large financial with a stellar rep dumb as$?    Jamie D maybe (?)

Although the average Joe hates all of us, including chase.





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[quote=Lew Ashby]

Didn't use the Lehman Bros structured products-- nice try borei.  Will only do FDIC-backed CD's.  By the way, stay out of my bushes, you perv!

Lew... posting your ability to avoid the many landmines is not a big endorsement for the platform.

[quote=igrift]

Lew... posting your ability to avoid the many landmines is not a big endorsement for the platform.

Yes, the fact is they will not change. They will still be big firms and a home for lame management and complacent reps afraid to leave because of the constant middle management banter of why smaller firms can’t offer the ‘total wealth management client experience.’ 'Keep the faith brother.'



Yes, they are Big - and burgeoned with their layers of middle management ilk who add no value to the client experience. Now watch 'em cut cost and scurry to pair back for their senior management sins. Ah, the security and strength of the behemoth leaders!    



And yes Lew, you have a great positive attitude and senior management likes guys like you. You’d be amazed if you experienced life outside the cell block… Trust me, the outside is better and with an attitude like yours, you’d flourish outside the wire cell. Senior management adds nothing and their constant talking points have become quite stale. Have the courage to leave the mother ship… The big firms will still be big - just like a big government that tries to convince the population that it must rely on their programs.



One thing that will not change - big firms opinion of their own value and arrogance. They certainly will not change their views and fail to realize that the advisor / client experience is really about the rep and the personal relationship with the client. It doesn’t matter if you are at a wire or independent…it’s about helping the client and has nothing to do with the size of the firm. Big isn’t best. You just can’t institutionalize the client no matter how hard you want it to be “You and Us.” Say good bye to “us” and the gluttony of management and join the “you and me” independent way. It’s the future…



When you jump the wall and get outside, you won’t care if they “get their act together” or repair their reputation. What value do you get from your firm? Don’t you deserve to have a better experience from your leaders? When all this passes…hey, you’re right - they won’t learn and nothing will change.    



      

When you jump the wall and get outside, you won’t care if they “get their act together” or repair their reputation. What value do you get from your firm? Don’t you deserve to have a better experience from your leaders? When all this passes…hey, you’re right - they won’t learn and nothing will change.    

      

Like all firms UBS has good and bad.  Marketing approval is a black hole for example.  They are good at creating polished turn key products to deliver to clients.  Pace Multi and FGA are great examples- but the elimination of PACE Multi models was a mistake.  Bond Desk has its limitations, but can be worked around if you know what you are doing.  There is a haircut on the bond desk before you see any bond offerings.  Of all the firms, they did the best job of handling ARC issues…just about everyone has been made whole and because of the freeze, many clients were protected from themselves and actually had a positive return on the money that was tied up.  For clients that absolutely needed access to funds (estate settlement etc), the client could borrow funds at no net cost to them.  Their recomended equity portfolios have had good performance (which surprised me when I was there). 

well said Lew.

Lew,

That's a good question.  Every wirehouse is currently paying high bonuses right now.  Maybe UBS pays the most, but I don't know.  Merrill is certainly up there.

Look at the question another way-  which big wirehouse has seen the most FA departures in terms of raw numbers and AUM ?  I think it is UBS, if not then they are a close second.  They may be paying high upfront bonuses if only to keep their top producing FA and AUM numbers from looking worse than they do.  They need to recruit if only to stay even.

UBS’s recruiting deal is currently below the levels of MER/BAC (highest of the largest Firms) as well as MS/SB. 

“But it’s crazy, if you ask me.  The payback period is so long-- I’d love to see how many actually pay off.”

A little prediction revision here on the thread as intel seems to be more consistent around these issues:

1) On potential sale;  HSBC or Credit Suisse and in 2009.    HSBC would be a retention disaster for many reasons… if you care… I’ll answer with an in depth response as to why I say that. Credit Suisse… lots of upside imho.

2) On FA RIF (reduction in force)… instead of terminations like April, UBS will just adjust grid and starve LOS 5+ if < $350k starting in Oct.  Why? Saves them lots of money. Much cheaper than terminating people and there’ll be less $ given away in voided/forgiven transitional packages.  They might as well term folks because it’ll have the same impact on headcount and aum in the end. Few can drive production fast enough to dig out.  If the market softens in Q3 into Q4 it’ll obviously accelerate this. There will also be some hits to long timers < $500k or close to that. For example…Mr. FA with LOS ‘forever’ dragging in the  $300s or $400s.

3) Sales Managers… Oct. - I think this is well known already… massive ‘complexing’ will occur in small branches.  A bunch of guys forced into production.  Some smart ones with a good following and some willing and loyal FAs will lift out here and there.

Credit Suisse? After all that has happened you think another SWISS bank would try to gamble on the US market?  Their model does not work here. 

We haven’t heard form secretknowledge for a long time.  Secret, you out there?

1. Robert McCann. He states in the documents that he filed in his suite against Banc Of America that his non compete is keeping him from taking his dream job. I do not think that his dream job is to run UBS unless:



A. It involves taking the old PaineWebber private. UBS gets cash plus stake in company and he has a chance to make a fortune on the IPO.



B. UBS and Wells Fargo Securites merge and he runs the merged company.



2. I do not think that Credit Suisee, HSBC or JP MOogan are buyers.



3. UBS U.S. has a scale issue. They either need to shrink the firm considerabbly or merge to get scale. I do not think that shrinking the firm to the size needed is a viable option.



4. On the October RIF. I think that it is mostly CSA’s and operations. The RIF in ops will be do to the complexing of the operations departments.



5. On lift outs of small branches because of the producing branch manager issue,I think this could happen, I believe they will be smallerbranches were the salary of the manager is very small and they can not afford the time to build a book or just do not want to. In that situation, the only thing they have to sell are the brokers in the office.



6. On UBS as a place to work. From what I here from the recruits from last year, some things are better and some are worse. Personally, I think that it is harder to get things done than it was in the past. At the same time, I am working on several projects that require a lot of support and I am getting it.



A lot depends on your local situation. We happen to have a very good office that has been together for a long time. However, some of the decisions made in the last reorg have weekend our office.   



7, I think most FA’s are just waiting for the next sjhoe to drop. Replacement of Marten, Jamie or a sale being the most likley. Like FA’s everywhere they just want a stable environment with as little distractions as possible to work in.



8, The key for all of us no matter were we work is to call our clients, plan with them analyze portfolios and give advice on how they should reposition themselves.



9. Personally, I believe the overall environment for our businesses is better then it has been in a while. I think that both the clients and advisors have come out of there shell and are starting to figure out how to be iinvested in the new normal.



10. On channel preferences, I believe that it is whatever works fgor your particular situation. I know advisors in most of the different channels and they all have there issues. For example, all of my clients are out of ARC’s and Auction Rates. Most independent advisors are stuck. I am sure ther are things that exist in the independent channels that are both better and worse that what is at the wirehouses.



11. I saw an article this week that CitiMorg is going to complexes also. Merrill is already there.



12. I wonder what the labor day weekend will bring for advisors leaving all of the firms. It seems that movement over the past six weeks or so has declined.



Good luck everyone.

1. Robert McCann. He states in the documents that he filed in his suite against Banc Of America that his non compete is keeping him from taking his dream job. I do not think that his dream job is to run UBS unless:

A. It involves taking the old PaineWebber private. UBS gets cash plus stake in company and he has a chance to make a fortune on the IPO.

Lew… with all do respect(I can say this because I said “with all do respect” said  Ricky Bobby)… You have no right whatsoever talking this way if you are not an original PaineWebber guy.  I’m sorry Lew, you are right that I am bitter but the Swiss Nat…have so much fuked this firm up it is not repairable.

Lew… with all do respect(I can say this because I said “with all do respect” said  Ricky Bobby)… You have no right whatsoever talking this way if you are not an original PaineWebber guy.  I’m sorry Lew, you are right that I am bitter but the Swiss Nat…have so much fuked this firm up it is not repairable.

[quote=Lew Ashby] If that’s at UBS, then adapt your model to fit the parameters they give us to work with. If not, then you must make a change. It’ll kill you otherwise.

[/quote]

Drink the wirehouse koolaid or begone! Resistance is futile.

I gave up the Kool-Aid when I left EJ!

Time for an update on UBS…

I KNOW of at least 2 FAs who have been told directly by BMs that they need to get their plan B in place asap.  This since Monday this week. LOS 7 $205k gross and another at $180 ish in production with 4 LOS.

Payout grid adjustment DOWNWARD for bottom quintiles is weeks away- I think it’s a foregone conclusion.  It’s more of the ‘starve em out’ approach.

I maintain my prediction that a SALE or other major change concerning the entire US wealth management group will happen before Halloween. Rumor mill is heating up. Rumors where the particulars are concerned are usually bogus, but they always precede a legitimate event.

UBS advisors can verify this.  Recruiting calls from firms directly and external recruiters seem so spike dramatically just prior to large events. I’m hearing that the volume is dramatically up this month. True?

The major event is McCann coming in. We just redid the grid recently, I doubt that we are going to have another downward movement on the low end.

Why would McCann consider a firm with 7000 advisors, with only 4-5000 that do any real numbers, a “dream Job”?  If he and some rainmakers could take it private and restore some lost employee and stakeholder wealth, maybe…maybe.  Other than that, why would he want to head an organization that is loaded with problems.  He alone can’t solve them all.  A wholesale change of leadership is needed and needed quickly.  Marten, Jamie, nat’ sales, compliance, legal…they all need re-tooled with fresh ideas and most of all common sense.  However, please keep in mind that McCann has NEVER been an advisor at any point in his career.  Most of us know what that means.  A grossly overpaid cost cutter/administrator with no loyalty from the advisor ranks, and has no clue what really happens on the ground level.

Time for an update on UBS…

I KNOW of at least 2 FAs who have been told directly by BMs that they need to get their plan B in place asap.  This since Monday this week. LOS 7 $205k gross and another at $180 ish in production with 4 LOS.

Payout grid adjustment DOWNWARD for bottom quintiles is weeks away- I think it’s a foregone conclusion.  It’s more of the ‘starve em out’ approach.

I maintain my prediction that a SALE or other major change concerning the entire US wealth management group will happen before Halloween. Rumor mill is heating up. Rumors where the particulars are concerned are usually bogus, but they always precede a legitimate event.

UBS advisors can verify this.  Recruiting calls from firms directly and external recruiters seem so spike dramatically just prior to large events. I’m hearing that the volume is dramatically up this month. True?

Gorman was never an advisor either…

You didn’t hear this from me…

I have first hand knowledge that branches (UBS) in New Jersey are shutting down and consolidating as we speak. 

[quote]
UBS advisors can verify this.  Recruiting calls from firms directly
and external recruiters seem so spike dramatically just prior to large
events. I’m hearing that the volume is dramatically up this month.
True?
[/quote]

True. The boys have been targeting UBS almost exclusively for a month.

Funny thing is that the majority of UBSers seem to have the head-in-sand mentality. Is it really that hard to see the writing on the wall?

[/quote]

4) UBS didn’t have a specific level of production in mind for their cuts, so brand new FA’s straight out of training programs and smaller producers in SMALLER markets were spared.

Lew,

I agree w/ what you are saying.  However, UBS will take a huge realized loss if they sell what is left of PaineWebber.  So I would bet a sale comes when/if UBS returns to profitability, maybe next year or 2011.

[quote=pewter]

YORK/ZURICH (Reuters) - Swiss bank UBS AG, which suffered massive
client withdrawals after a high-profile U.S. tax fraud probe, has cut
around 200 jobs at its U.S. wealth management arm, sources familiar
with the matter told Reuters.

The layoffs, which one source said
come on top of the 8,700 job cuts already announced and involve junior
and new advisors, signal an effort by UBS (VTX:UBSN.VX - News; NYSE:UBS - News) trim under-performing staff after its brand name was damaged by the U.S. tax row.

“It’s probably a combination of factors,” said David Williams, an analyst with Fox-Pitt, Kelton.

"I
would not be surprised if there had been a business downturn since the
Internal Revenue Service litigation and there is maybe an element of
performance review."

Swiss rival Credit Suisse (VTX:CSGN.VX - News)
is by contrast on a hiring spree, even though it cut its annual target
for new relationship managers by a third to 200 advisers.

The U.S. layoffs mark a change from UBS’ aggressive hiring of new wealth managers toward the end of 2008.

New
hires helped the U.S. wealth management arm to attract 16 billion Swiss
francs ($15.66 billion) of new client money in the first quarter of
2009. But it has suffered outflows since.

The job cuts represent 2.5 percent of the 7,939 financial advisers UBS had in the United States at the end of June.

A
source familiar with the situation said the layoffs were new employees
who had completed the training program or were new advisers in the
field.

“It looks as if the job cuts involve mainly junior staff with small portfolios,” said Vontobel analyst Andreas Venditti.

A second source familiar with the situation confirmed the layoffs. UBS was not immediately able to comment.

FRESH CUTS

Even
though UBS’ name has suffered during the tax dispute, the Swiss bank
was able to put a major headache behind it when it settled the issue in
August.

But its main rivals in the U.S. wealth management space, including Merrill Lynch and Citi (NYSE:C - News), are also suffering.

“The
advantage for UBS is that right now, there is no big U.S. financial
institution with positive brand association,” said Williams. "But they
will have to go a long way to make sure there is no lasting damage from
the U.S. tax litigation."

In April, the world’s second largest
wealth manager by client assets cut 2,000 U.S. jobs as part of a
restructuring plan to cut 8,700 jobs worldwide.

UBS Wealth Management Americas saw net new money outflows of 5.8 billion Swiss francs ($5.5 billion) in the second quarter.

Besides the tax dispute, UBS has been hurt by executive departures, bad bets on auction rate securities and write-downs.

UBS
increased its presence in the United States in 2000 with the $10
billion acquisition of PaineWebber Group, a brokerage firm with over
8,500 brokers and $500 billion in client assets.

McCann also taking Ron (Obama Commie)Wolf’s Job too as head of entire UBS USA.



Much better times ahead if you can just not get fired.