The world's largest wealth manager UBS AG has unveiled $3.4 billion in losses and said it would cut 1,500 jobs in its investment bank, after being hit by the recent credit crunch.
UBS said today it would write down 4 billion Swiss francs in losses in its fixed income portfolio and elsewhere, resulting in a third-quarter loss of 600-800 million Swiss francs, its first quarterly loss in nine years.
Investment bank head Huw Jenkins, who drove a rapid expansion in UBS' bid to join the top-five investment banking ranks worldwide, will leave along with group chief financial officer Clive Standish.
Marcel Rohner - who was named chief executive in July after the exit of CEO Peter Wuffli - will assume control of the investment bank and risk-management expert Marco Suter will become chief financial officer.
In a separate announcement, rival bank Credit Suisse said it was also hit by the credit crunch but that it would remain profitable during the third quarter with income from continuing operations after tax hovering round 1.3 billion francs.