REFILE-UBS CEO says won’t take bonus, employees will-paper

(Adds dropped word Sonntagzeitung in 12th paragraph)

* UBS CEO says bank has reduced proprietary trading

* Integrated banks withstood crisis best-Credit Suisse

ZURICH, Jan 31 (BestGrowthStock) – The chief executive of UBS
(UBSN.VX: ) said he would not take a bonus this year and that the
Swiss bank had limited investment banking proprietary trading,
according to a newspaper interview published on Sunday.
In a separate interview Urs Rohner, Vice Chairman of rival
Credit Suisse’s (CSGN.VX: ) board of directors, said banks with a
global reach that combined private and investment banking had
withstood the financial crisis best.

UBS (UBS.N: ) chief Oswald Gruebel, appointed at the end of
February 2009 to turn around the beleaguered bank, told the
Swiss newspaper Sonntag bank employees would have to be paid
bonuses to prevent the best ones from leaving.

“Otherwise all the good people will leave UBS. Why should
they stay,” he was reported as saying.

“Of course I won’t take a bonus. No, because the company’s
not making a profit.”

UBS, bailed out by the Swiss government and accused of
helping rich Americans dodge taxes, will publish fourth-quarter
results on Feb. 9, and analysts say the bank may post its first
quarterly profit in more than a year. [ID:nLDE60A1U2]

In 2008 it made a net loss of 20.9 billion francs,
Switzerland’s annual biggest corporate loss. [ID:nLB106591]


U.S President Barack Obama has proposed banning banks from
trading on their own account. [ID:nN21658127]

Swiss regulators clamped down on bank risk including
proprietary trading as early as mid-2008. [ID:nLQ145361]

“We’ve reduced proprietary trading in investment banking a
lot — we only have it to facilitate liquidity for our clients,”
Gruebel said.

Rohner said the integrated banking model should be allowed
to continue.

“Integrated banks withstood the crisis best,” he told
Sonntagszeitung. “The combination of private banking, asset
management and investment banking as well as global activity
lead to a diversification and stabilisation of business.”

Spokespeople at both UBS and Credit Suisse confirmed the
comments were accurate.

Penny Stocks

(Reporting by Catherine Bosley; Editing by David Cowell)

REFILE-UBS CEO says won’t take bonus, employees will-paper