UBS reportedly on the hunt for new U.S. brokerage chief executive

UBS AG is reportedly looking for a high-profile executive to run its behemoth brokerage business in the United States. According to a report in the Financial Times, Oswald Grubel, who took over as UBS’s chief executive officer in February, has elected not to sell the company’s wealth management business here, despite speculation in recent months that he might offload this business. Rather, he has chosen to restructure the business’s management team and search for a new individual to lead the U.S. brokerage business, which consists of roughly 8,000 brokers. FT reported that it was unclear whether Martin Hoekstra, the head of UBS’ U.S. wealth management business, would remain at the firm if a new wealth management leader is brought on board. Karina Byrne, a spokeswoman for UBS in New York, declined to comment on the search for a new U.S. wealth management head. She did say, however, that UBS has “said repeatedly” that the U.S. wealth management business is not for sale and that it remains committed to both the business and the region. Observers are already beginning to speculate about who UBS may bring in to run the U.S. wealth management business. According to industry recruiters, two top-drawer — and conveniently available — names already circulating are Sallie Krawcheck, the former head of Citigroup Inc.’s wealth management group, and Robert McCann, the former head of the brokerage business at Merrill Lynch & Co. Inc. Ms. Byrne declined to comment on any such speculation. But one industry recruiter familiar with the search, who declined to speak for attribution, noted that both individuals are on a “very short list” of candidates and added that the search could be wrapped up in the next couple of weeks. UBS AG is based in Zurich, Switzerland. Citigroup and Merrill Lynch are both based in New York.