More heads roll at UBS

ResignationFrancois Gouws and Yassine Bouhara, co-heads of global equities at UBS, have resigned following the recent trading incident.

The Swiss bank lost $2.3 billion (€1.7 billion) through unauthorised speculative trading in various S&P 500, DAX, and EuroStoxx index futures over months.

UBS says the resignations of Gouws and Bouhara come as they assume overall responsibility for the effective management of the equities business.

Mike Stewart, who recently joined from Bank of America Merrill Lynch where he headed its global equities division, is now sole global head of equities at UBS.

In a statement, UBS says “appropriate disciplinary action will be taken against other individuals in the equities business”. UBS also expects to take disciplinary action against responsible staff in other functions.

Oswald Grübel resigned from his role as chief executive last month.

Meanwhile, suspected rogue trader Kweku Adoboli has been charged with fraud by abuse of position. The case continues.

UBS expects to report a “modest” net profit attributable to shareholders for the third quarter of 2011, despite the $2.3 billion loss.

©2011 funds europe