Oswald Gruebel(CEO) of United Bank of Switzerland has resigned due to a rogue-trader. Mr. Adoboli, as the one who caused the United Bank of Switzerland to loss $2.3bn, was arrested and charged with false accounting and fraud last week. The loss results in more blocks for the bank, especially it is still in the period of recovering from the economic recession in 2008. Mr Villige said, “The Investment Bank will be less complex, carry less risk and use less capital to produce reliable returns.”
I think UBS board meeting should be scheduled as soon as possible in order to tackle the urgent situation. In addition, the rogue-trader might lead the bank to lay off employees for alleviating the impact from his disastrous miscalculations. Also, UBS may choose to take less risk, it means that they are going to have a smaller balance sheet and less capital. UBS is facing a big test, and they have to come up with a plan to reduce effects of this scandal deadly.
Article: http://www.bbc.co.uk/news/business-15046385