February 19, 2009 / 9:18 PM / 11 years ago

UBS credit derivatives head Grimaldi departs

NEW YORK (Reuters) - UBS AG’sglobal head of credit derivatives, Keith Grimaldi, left the Swiss bank on Thursday, people familiar with the situation said.

Grimaldi joined a parade of fixed-income executives who have left as the bank embarks on a “radical” restructuring of its investment banking and trading business. UBS has been battered by more than $50 billion in credit losses during the past two years, most stemming from its exposure to mortgage securities and debt-derivatives.

UBS declined to comment on Grimaldi’s departure.

Last month, UBS announced changes to its fixed income, currencies and commodities trading business, with 2,000 more job cuts and the departure of four senior executives.

UBS is trying to downsize the investment bank, slash costs and redeploy capital in light of sluggish markets.

In addition to the previously disclosed decision to move out of municipal bonds, proprietary trading and most commodities, UBS will completely exit the business of creating and trading real estate securities and structured debt products.

The four senior fixed-income executives who left UBS include commodities head Todd Morakis, interest rates co-heads David Sacco and Sascha Prinz and credit chief Chris Ryan.

Reporting by Joseph A. Giannone and Kristina Cooke; editing by Jeffrey Benkoe

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