UBS chief quits amid growing risk management concerns

Amid ongoing pressure to improve its risk management policies and credentials, Swiss bank UBS announced this week the resignation of CEO Oswald Gruebel. While the move signifies continued turmoil for the European finance giant, stocks rallied on Monday, seeing the departure as evidence of UBS moving away from its investment banking division. "As the fallout from the trading scandal widens, a senior executive at UBS speculated that Gruebel quit to prevent the greater disruption that might have resulted from the departure of investment-banking chief Carsten Kengeter, who's in the midst of shrinking the division," reports Bloomberg. The move comes less than two weeks after news broke of more than $2 billion in losses stemming from a rogue trading spree by former UBS investors Kweku Adoboli. It also highlights the bank's renewed focus on risk management. In fact, many experts are even anticipating the resignation of newly appointed chief risk officer Maureen Miskovic, as well as investment-banking chief Carsten Kengeter. The reconstruction of the company has prompted insiders to describe the state of affairs as being in disarray.