UBS AG
| UBS AG | |
|---|---|
| Missing image Ubs.gif UBS AG logo | |
| Type | Public |
| Founded | 1998 merger of the Union Bank of Switzerland and the Swiss Bank Corporation |
| Location | Basel & Zürich, Switzerland |
| Key people | Peter A. Wuffli, CEO Marcel Ospel, Chairman |
| Industry | Finance |
| Products | Financial Services |
| Revenue | ~900 CHF (in 2003) |
| Website | www.ubs.com |
UBS AG (NYSE: UBS), (SWX: CH0012032030) (TYO: 8657) is a financial firm. It is headquartered in Basel and Zürich, Switzerland. It is a wealth management, investment banking and securities firm. It is also a global asset manager and does retail and commercial banking in Switzerland. UBS has invested assets of 2.231 trillion Swiss francs, shareholders' equity of 35.310 billion Swiss francs and market capitalization of 95.401 billion Swiss francs.
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History
UBS (Union des banques suisses) was formed through a merger of the Union Bank of Switzerland and the Swiss Bank Corporation in 1998, following the LTCM crisis, which effected the Union Bank of Switzerland. UBS is no longer an acronym but the company's brand, like 3M. In 2000 it acquired Paine Webber Wealth management to become the world's largest wealth management firm for private clients. Invested assets in all wealth management businesses, including the U.S., total CHF 1.3 trillion.
The bank is present in all major financial centers worldwide, with offices in 50 countries. According to the UBS website, the bank had 66,894 employees on September 30, 2004, but the full-time equivalent headcount was only 65,929 on December 31, 2004. The 2004 Q4 report breaks these Financial Business permanent staff down by region as: 26,662 in Switzerland, 25,511 in the Americas, 3,850 in Asia and Australasia, with 9,906 elsewhere.
Management
The Group Executive Board is the executive body of the company. Its members are:
- Group CEO: Peter A. Wuffli ([1])
- Chairman and CEO Investment Bank: John P. Costas ([2])
- John A. Fraser (Chairman and CEO Global Asset management), George Gagnebin (Chairman Wealth Management and Business Banking), Peter Kurer (Group General Counsel), Marcel Rohner (CEO Wealth Management and Business Banking), Clive Standish (Group CFO), Mark B. Sutton (Chairman and CEO Wealth Management USA).
Marcel Ospel is the Chairman of the Board of Directors.
Businesses
UBS is organized in four business groups: Wealth Management & Business Banking, Investment Bank, Global Asset Management, Wealth Management USA, .
Competition
Main competitors are Goldman Sachs, Morgan Stanley, Merrill Lynch, Citigroup, Credit Suisse First Boston and others.
Workplace
Diversity
UBS was named one of the 100 Best Companies for Working Mothers living in the US in 2004 by US based Working Mothers magazine. It is a member of the Stonewall Diversity Champions scheme and has active Gay and Lesbian, ethnic minority, and women's networking groups.
Internships
UBS hosts a number of "superdays" for different fields, during which potential interns are flown to Stamford, Connecticut, for a series of interviews. The day consists of tours of the building and trading floor, a group exercise, behavioral interview, and field-relevant technical interview. UBS has a strong intern recruiting program at many US Colleges and Universities, but electronic applications [3] are also considered.
Financials
For the year ended December 31, 2004
- Net profit CHF 8,089 million (8.089 billion swiss francs).
- Moody's long-term credit rating: Aa2
- Employees: 65,929
Controversy
- In April 2005, UBS lost the high profile case Zubulake v. UBS Warburg, a promotion discrimination and sexual harassment suit. The plaintiff convinced the jury that her boss had denied her important accounts and mocked her appearance to co-workers. Also, she claimed that there were several sexist policies in place, such as entertaining clients at strip clubs that made it difficult for women to socialize and foster business contacts with clients. An important event in the case was the inability of Warburg to produce several incriminating e-mails of which Zubulake could provide records for. The plaintiff was able to prove that UBS had destroyed relevant e-mails after the litigation hold had been in place. Because of this, federal judge Shira Scheindlin gave the jury an "adverse influence" instruction, essentially stating that the jury had to assume that the missing e-mails provided damning evidence against the defendant. UBS was ordered to pay the defendant $9.1 million in compensatory damages (including back pay and professional damage), and $20.2 million in punitive damages. The case was seen as a landmark in the realms of e-discovery, document retention, computer forensics, and human resources, particularly because the defendant's inability to produce electronic documents shifted the burden of proof to the defendant.