UBS to shake up, not sell, US brokerage -- FT

NEW YORK, July 5 (Reuters) - UBS's (UBSN.VX) chief executive wants to shake up the top managerial ranks of the embattled bank's brokerage business in the United States after deciding against a sale, the Financial Times reported on Sunday, citing people familiar with the matter.

UBS has repeatedly considered a sale of its U.S. wealth management business, which consists mainly of the Paine Webber unit acquired in 2000, and held unsuccessful talks with Morgan Stanley, among others, late last year, the FT said.

After taking over at the Swiss bank in February, CEO Oswald Grubel also looked at offloading the business, which sells financial products to wealthy clients, the paper said.

But bankers say he has opted to keep the business for the time being, the paper said. As part of his determination to fix and expand an operation that has been hampered by underperformance and a long-running battle with U.S. tax authorities, Grubel is said to be looking for a new leader for the US operations, the paper said.

UBS was not immediately available for comment. (Reporting by Megan Davies and Juan Lagorio; Editing by Jan Paschal)