UBS AG, buffeted by three quarters of declining earnings and losses at one of its hedge funds, replaced Peter Wuffli as CEO of the world’s biggest money manager, Bloomberg reports.
Marcel Rohner, the deputy CEO, will succeed Wuffli immediately, Zurich-based UBS said late yesterday. Marcel Ospel, 57, agreed to stay on as chairman for at least three years after the board rejected his proposal to have Wuffli take his place.
The board of directors lost faith in Wuffli after UBS shut its Dillon Read Capital Management LLC hedge fund unit at a cost of $300 million and suffered defections by senior bankers, including Ken Moelis, the top U.S. dealmaker. While competitors reported record profits in the past year, UBS earnings fell and its shares trailed Credit Suisse Group and Deutsche Bank AG.
“Nobody saw this coming so fast and presented in such a fashion,” said Florian Esterer, who helps manage $49 billion at Swisscanto Asset Management, including UBS shares. “The board not wanting to make Wuffli chairman must have been a huge blow.”