Writedown Fears Nag as UBS Rejigs Management

UBS failed to calm investor fears about possible further writedowns on Tuesday, dishing out instead a restructuring of top management and sending the shares to a fresh 10-year low. UBS, Europe’s biggest casualty of the credit crisis and under fire from investors for shoddy corporate governance, said it would dismantle the office of chairman, a key demand of one of its top shareholders, Olivant. Investors are worried not only possible about further losses on investments but also that UBS may ask shareholders for more cash. “There is talk that UBS will propose another capital hike,” one Zurich-based trader said. UBS is under pressure from the Swiss financial watchdog and investors to overhaul its business after more than $37 billion in writedowns during the global credit turmoil. Four board members will resign and replacements will be elected at an extraordinary general meeting planned for October 2, UBS said.

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