Feb 12 Former UBS AG investment bank
CEO Carsten Kengeter, who was tasked with winding down the Swiss
bank's non-core portfolio, is set to leave the bank, according
to an internal memo seen by Reuters.
Kengeter, who will assist in a short transition period, will
be succeeded by Sam Molinaro, a former Bear Stearns executive.
Molinaro will take charge with immediate effect and will
report to group CEO Sergio Ermotti.
A spokesman for the company confirmed the contents of the
Kengeter, who joined UBS four years ago from Goldman Sachs
, spent three of those years as CEO of the investment
bank. During that time it lost $2.3 billion due to trades by
rogue trader Kweku Adoboli which also cost former Chief
Executive Oswald Gruebel his job.
Kengeter was sidelined following a restructuring plan,
announced in October, to fire 10,000 staff and ditch much of its
trading business to return UBS to its private banking roots. He
moved off the executive board and was tasked with overseeing the
non-core unit established to wind down the discontinued
Last Tuesday, UBS reported faster than expected progress in
overhauling its investment bank, slashing risky assets by 19
percent to meet capital rules.
Andrea Orcel replaced Kengeter as sole head of the
investment bank months after CEO Sergio Ermotti hired Orcel to
reshape its struggling investment bank business in July 2012.
Italian banker Orcel has since brought in a group of close
collaborators from Bank of America, where he and Ermotti
worked for years.
The co-head of UBS's financial institutions group (FIG) in
Europe, Edouard de Vitry, is leaving the bank in the latest high
level restructuring in its investment bank division, three
people with knowledge of the situation said on Tuesday.
It is not known what Kengeter's plans are once he leaves the
bank. His replacement, Molinaro, joined UBS last year as chief
operating officer of the investment bank, later taking up that
position in the non-core unit.