GLOBAL - UBS is set to cut nearly 9,000 jobs globally following heavy first quarter losses, but Global Pensions understands the 11% cut in global workforce will leave the asset management division unscathed.
In a speech at the company's annual general meeting, UBS chief executive Oswald Grübel said: "We know where we have to set to work. It will be a long road back to success without any quick fixes. Rather, we will move forward step by step in a rigorous and disciplined manner."
He said in the future UBS would maintain its core business - international wealth management and the Swiss banking business - alongside its investment banking and asset management.
He also said UBS would exit "high-risk and unpromising businesses," as a result of an ongoing review undertaken to "make clear decisions about which businesses it will remain active in and grow, and which it will exit".
Grübel said UBS was planning cost savings by the end of 2010 of approximately CHF3.5bn to CHF4bn compared to 2008 levels.
According to Grübel, the losses stemmed from a negative contribution totaling roughly CHF3.9bn due to losses on previously disclosed illiquid risk positions, credit loss expenses and valuation adjustments on the last positions transferred to a fund controlled by the Swiss National Bank.
Meanwhile, Goldman Sachs yesterday announced its asset under management decreased to US$771bn, which represents a decline of US$27bn during the first quarter of 2009.
Goldman said the losses were due to US$16bn of market depreciation, primarily in equity assets, and US$11bn of net outflows.
Net revenues for asset management were US$949m, 28% lower than the first quarter of last year, because of lower management and other fees resulting from fewer assets under management and lower incentive fees.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
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