UBS to split wealth business; Hoekstra to lead in Americas

After posting another massive loss today, the Swiss bank UBS AG said it will reorganize its wealth management businesses.
FEB 10, 2009
After posting another massive loss today, the Swiss bank UBS AG said it will reorganize its wealth management businesses. The move will affect 7,900 brokers and financial advisers at about 480 branches in the United States. UBS is creating two new divisions, one called Wealth Management and Swiss Bank, the other labeled Wealth Management Americas. Marten Hoekstra will lead the latter group, which will focus on broadening market share in the United States and further developing the Canadian and Latin American markets. UBS of Zurich announced the changes in its wealth management business after it posted a larger-than-expected loss of $7 billion in the fourth quarter and cut some 2,200 jobs in order to focus on the Swiss market. The company said that the results were due largely to losses in its investment-banking business. That group saw trading losses, further write-downs on its exposure to bond insurers, and charges taken against its leveraged-finance commitments. Profits were down about 40% in the wealth management business as UBS reported further outflows of cash. The company included few details of the Wealth Management Americas group in its announcement in Zurich this morning. Recently, UBS was said to be considering getting out of the U.S. wealth management business, according to the New York Post. Last week, Wachovia Securities LLC of St. Louis and UBS Financial Services Inc. of New York engaged in preliminary talks about a joint venture for their retail-brokerage units, also according to the New York Post.

Latest News

Texas man says SEC and fund could make him pay twice
Texas man says SEC and fund could make him pay twice

A $141M judgment and a federal asset freeze collide over one shrinking pool

Osaic executives Kristy Britt and Greg Cornick to leave
Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.