SINGAPORE, Sept 27 UBS AG's largest
shareholder supported former chief executive Oswald Gruebel's
strategic plan for the bank and believed he could have stayed on
to manage it through the latest crisis, a source with direct
knowledge of the matter said on Tuesday.
The faith of Government of Singapore Investment Corp Pte Ltd
, the city-state's sovereign wealth fund, in UBS's
departed CEO underscores the complexity of Gruebel's resignation
and reveals the extent to which a variety of internal and
external factors, including political pressure, played a role in
Gruebel resigned over the weekend as UBS management grappled
with a rogue trading scandal that cost the bank $2.3 billion and
readied a plan to steady the struggling bank.
GIC's support of Gruebel until the very end also shows that
while his leaving may have satisfied some shareholders, it
hardly reassured the Singapore fund, which owns 6.4 percent of
"GIC believed he had good plans," said the source, who added
that GIC was concerned about what the leadership changes would
do to the bank's future strategy.
"Gruebel succumbed to Swiss national pressure," added the
source, who was not authorised to speak publicly about the
The source reiterated GIC's recent stance that UBS was a
well-capitalised bank with a strong private wealth management
business, a signal that the sovereign investor was not preparing
to sell out of its holding.
GIC declined to comment. UBS was not immediately able to be
(Reporting by Saeed Azhar; Editing by Michael Flaherty and