Shares of UBS (UBS) Lower as Sale of U.S. Brokerage Unit Refuted
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UBS (NYSE: UBS) shares are trading lower Thursday morning, partly on the heels of reports the bank's U.S. brokerage unit is not for sale.
Sources suggest new CEO Sergio Ermotti and Chairman Kasper Villager have affirmed the Wealth Management Americas unit will be retained by UBS, saying it is an "essential" unit to drive growth.
Ermotti and Villager also reiterated support for the arm's Chief, Robert McCann, who joined from Merrill Lynch two years ago in pursuit of a turnaround for the branch.
Comments were made through an internal memo to WMA employees.
Speculation that UBS will sell the less-profitable unit arose following a multi-billion dollar trading loss scandal and subsequent retirement of then-CEO Oswald Gruebel.
Reuters notes this isn't the first time WMA has been involved in talks. Wells Fargo (NYSE: WFC) expressed interest in the unit earlier in 2011, and HSBC (NYSE: HBC) was rumored to have made a bid a couple of years ago.
UBS shares are 4 percent lower Thursday morning. Traders in the stock are also likely responding to credit ratings action on Euro banks at Fitch overnight.
Sources suggest new CEO Sergio Ermotti and Chairman Kasper Villager have affirmed the Wealth Management Americas unit will be retained by UBS, saying it is an "essential" unit to drive growth.
Ermotti and Villager also reiterated support for the arm's Chief, Robert McCann, who joined from Merrill Lynch two years ago in pursuit of a turnaround for the branch.
Comments were made through an internal memo to WMA employees.
Speculation that UBS will sell the less-profitable unit arose following a multi-billion dollar trading loss scandal and subsequent retirement of then-CEO Oswald Gruebel.
Reuters notes this isn't the first time WMA has been involved in talks. Wells Fargo (NYSE: WFC) expressed interest in the unit earlier in 2011, and HSBC (NYSE: HBC) was rumored to have made a bid a couple of years ago.
UBS shares are 4 percent lower Thursday morning. Traders in the stock are also likely responding to credit ratings action on Euro banks at Fitch overnight.
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