Bloomberg: UBS Bonuses at Risk as $2.3 Billion Trading Loss Erases Profit
Bonuses at UBS AG (UBSN)’s investment bank may be at risk after the company suffered a $2.3 billion loss from what it described as unauthorized trading.
Switzerland’s largest bank said Sept. 15 that it may be unprofitable in the third quarter as a result of the loss, which exceeds the 1.21 billion Swiss francs ($1.4 billion) in pretax profit from the investment bank in the first half. The bank first estimated the loss at $2 billion, before raising it yesterday.
“A problem of this magnitude means they may be very strongly challenged to have any bonus pool at all,” said Steven Hall, managing director of Steven Hall & Partners, an executive compensation consulting firm based in New York. “It’s pretty clear there are going to be a lot of people who are not going to get bonuses.”