UBS reorganizes U.S. wealth business

* UBS consolidating U.S. wealth business into two divisions

* McCann, Mulholland make new staff appointments

By Clare Baldwin

NEW YORK, Feb 4 (Reuters) - The U.S. wealth management division of embattled Swiss bank UBS AG (UBSN.VX) said on Thursday it is reorganizing its business.

Chief Executive of Wealth Management Americas Robert McCann and Head of the Americas Wealth Management Advisor Group Robert Mulholland, in two e-mails to employees, outlined a broad plan of consolidation and new appointments. The e-mails were seen by Reuters.

The changes are part of a months-long process McCann has undertaken to revive an 8,000-strong brokerage force battered by a U.S. Internal Revenue Service tax-evasion probe and massive credit losses incurred by its investment bank.

In the past year, hundreds of brokers have left the bank and clients have yanked billions in assets.

McCann and Mulholland, both ex-Merrill Lynch employees, said UBS is consolidating its U.S. wealth business into two divisions from three. The new East Division will be led by David McWilliams and the West Division will be led by Michael Schweitzer.

Mulholland said UBS will combine its New Jersey and New York Market Areas into a single Metropolitan Region led by Chris Amo.

The executives also announced a number of staff changes.

Diane Frimmel will now head UBS' emerging affluent segment and investment center. She will join the Wealth Management Advisor Group leadership team and report to Mulholland.

Frimmel's former position as Chief Operating Officer of Wealth Management Americas will be filled by Paul Santucci. Santucci will be in charge of recruiting and talent development and managing daily operations related to real estate, finance, projects and risk.

Valerie Rowland will lead the Branch Chief Operations Office and will report to Santucci.

Jason Chandler will leave his post as the Northeast Regional Manager to head the Private Wealth Management division, where he will manage the company's ultra high net-worth business. U.S. private wealth office managers will report to Chandler.

John Staus will take a newly-created position heading Strategic Client Relationships. Straus will coordinate advisory services for ultra high net-worth clients and will report to Brian Hull, head of wealth management partnerships.

Bill Carroll will leave his current position as Market Area Manager for New Jersey and assume the role of National Sales Manager.

Mara Glassel, who led National Sales for more than four years, and Robyn Turk, who helped launch the Investment Center, have not yet been named to new positions.

Miguel Ferrer and Carlos Ubinas will continue to direct operations in Puerto Rico. (Editing by Muralikumar Anantharaman)