* UBS reviving fixed income, currencies, commodities-paper
* Since early 2010 UBS back in CDOs, etc. -paper
* Swiss bank may hire 100-300 specialists-paper
ZURICH, March 13 (BestGrowthStock) – UBS (UBSN.VX: ) is considering
possibly returning to its commodities business this year, some
of which it sold during the financial crisis, a Swiss newspaper
said on Saturday, citing the co-head of UBS’s investment bank.
According to the Neue Zuercher Zeitung, which gave no direct
quotes, Co-Chief Executive Carsten Kengeter said UBS was about
two thirds of the way to reconstituting its fixed income,
currencies and commodities (FICC) business.
A spokesman for UBS confirmed the article was accurate.
UBS, which suffered heavy writedowns during the financial
crisis and had to be bailed out by the Swiss government, is
active in precious metals.
In January 2009 the wealth management giant took the radical
step of selling its base metals, oil, and U.S. power and gas
business to Barclays (BARC.L: ). It said at the time it would exit
most commodities business, including agriculturals and base
metals. It held on to precious metals, index and exchange-traded
commodities.
Since early 2010 UBS once again is selectively active in
liquid asset-backed securities, the collatoralised debt
obligations business, collatoralised loan obligations, areas of
the U.S. mortgage market and other sectors, the paper reported.
The Neue Zuercher Zeitung also reported that UBS may hire
another 100 to 300 new specialists for the FICC division, which
employs 1850 people.
Last year, banks including Bank of America (BAC.N: ) and UBS’s
rival Credit Suisse (CSGN.VX: ) boosted staff employed on
commodities to take advantage of an upswing in prices and
greater risk appetite.
Stock Market Report
(Editing by Patrick Graham)
UBS may return to commodities in 2010-paper
Commnets
Copyright 2011 Thomson Reuters. Click For Restrictions
