Chillin' out till it needs to be funded
While the F1 circuit blazes a trail on the weekend and Abu Dhabi, Turkey, Korea and Noida’s Buddh Circuit watch the 2 year old Night Safari in Singapore, the first signs of activism of the SWF investors promised in the boom or Bust edgy days of 2007, finally seemed to make an appearance at UBS. After making a vehement promise at the townhouse to keep the dying Investment Banking dream alive at the universal bank that UBS had become, Ossy Groebel, the first of the traders put in charge after a power struggle in the last decade lost the stewardship of the bank at the board meeting in Singapore. The loss is being rerated upwards but not unseemingly higher right now . More hidden losses may be discovered later while the bank decides the fate of the investment bank
While Stuart survives powerfully at HSBC, Morgan Stanley survived another trader led scare when a blog reported its Gross European sovereign holdings of $40 bln plus and raised the question of bankruptcy. Though the positions are almost all netted in exposure to Europe itself and Gorman explained it personally to analysts, another journo Gasparino was able to raise quite a controversy and a TV interview after Dick Bove held long interviews Friday to explain why the analysts believed the banks were not going to fall in America and lines were being clearly drawn after 4 years of the crisis’ halcyon days between American and European origins and business of the banks.
Meanwhile Groebel’s ouster also meant Alex Weber comes on board at UBS by 2013 as Chairman while Sergio Ermotti was appointed interim CEO at the board meeting yesterday. Current chairman Villiger avered the investment Bank CEO was well in control though it seems obvious Kengeter and the Investment Bank linked to UBS’ wealth management fortunes may have to shut down sooner or later with due recourse for wealth investors at UBS. Tax treaties signed by the Swiss and the fixed pegging of the Swiss franc kept the hitherto small but mghty” Swiss alternating between hope and despair, not to say the center of attention of the crisis thru September Weber cannot join before 2013 despite Bundesbank approvals as the Swiss regulators and European regulators seem to favor a longer gap between both top executives leaving
In the mean time, at Morgan Stanley , John Mack kept an advisory role for himself after a creditable Q2 performance and th enew CEO dealt with the European bankruptcy scare with direct interventions aimed at educating and imploring all the sector analysts. James P Gorman also kept both Chairman and CEO posts in the tradition of John P Mack. While Dick Bove did come out in his favor and most of the banks did well on the rebound after MS rose back, the week might yet get murkier with journalist Charlie Gasparino questioning rather loudly whether Gorman’s people threatened him for raising Gorman’ sintervention as a front page story