LONDON/ZURICH Jan 9 UBS's investment
banking and risk management bosses will be quizzed by British
lawmakers on Wednesday on standards and controls at the Swiss
bank after a string of scandals.
Andrea Orcel, investment bank chief executive since November
after joining as co-CEO in July, heads a trio of executives who
will appear before a parliamentary commission after UBS was
fined $1.5 billion last month for rigging Libor interest rates.
In recent years, UBS has also been hit by a $2.3 billion
rogue trading loss, about $50 billion of U.S. mortgage-related
losses, and a damaging tax avoidance row with U.S. authorities.
Italian Orcel will be joined by chief risk officer Philip
Lofts and Andrew Williams, global head of compliance.
UBS's Libor fine was the second biggest financial fine ever
on a bank and more than three times the penalty imposed on
Barclays in June for the same offence - an event which
prompted Britain to set up its inquiry, the Parliamentary
Commission on Banking Standards.
Orcel - previously at Merrill Lynch where he was slammed for
taking a $34 million pay package in 2008 after advising on the
disastrous RBS-led takeover of ABN AMRO - is leading a
business which saw 10,000 jobs axed and a retreat from fixed
income announced on the day he took the helm in November.
Some analysts say the revamp may not have gone far enough -
UBS may need to axe another 2,000-3,000 investment banking jobs
this year, Deutsche Bank analysts estimated on Tuesday.
Orcel will likely tell lawmakers the restructuring not only
cut costs but also simplified the business and made it less
risky, cutting the threat of new scandals.
Lofts, who sits alongside Orcel on UBS's 11-strong top
management team, is a 29-year veteran at the bank and was
re-installed as chief risk officer late in 2011 after UBS's
rogue trading scandal, following a year as U.S. boss.
Williams, at UBS for 19 years, has been responsible for
compliance issues since 2009.
The PCBS, a cross-party panel of lawmakers headed by
Conservative MP Andrew Tyrie, is switching its focus to
standards and culture after spending most of the past three
months assessing structural reform.
Tyrie said at the time of UBS's fine that Libor rigging was
"the clearest illustration yet that a great deal more needs to
be done to restore standards in banking".
Former UBS CEO Marcel Rohner will appear before the
lawmakers on Thursday, flanked by Huw Jenkins, Jerker Johansson
and Alex Wilmot-Sitwell, three former heads or co-heads of UBS's
investment banking division.