UBS executives said last month’s $2.3 billion unauthorised trading loss would not force a dramatic reduction in bonuses, as the bank set aside almost 90 per cent of its investment banking revenues for staff pay.
The Swiss group defied analysts’ expectations that it would slash bonuses in the wake of the scandal by revealing that the investment bank accrued SFr1.35 billion ($1.53 billion) in personnel expenses in the third quarter.
That is just SFr170 million less than the SFr1.52 billion in total revenues earned by the division, which UBS is slimming down. – (Copyright 2011 The Financial Times Limited)
