UBS 2 Billion Loss Analysis: Overview Of The Firm, Summary Of The Case

UBS 2 Billion loss analysis
Student’s name
Institutional affiliation
UBS 2 Billion loss analysis
Introduction
The UBS is a global financial organization which provides asset management, wealth management and investment banking services for companies in both the private and public arena. The company also offers investment and wealth management services to the retail sector. The name of the company was initially an acronym of the Union Bank of Switzerland, a name it lost following its amalgamation with Swiss Bank Corporation in the year 1998. Today, UBS is the largest financial institution in Switzerland with a investment of about 2.8 trillion Swiss Francs. In addition, the bank has branches in over 50 countries and an employee base of about 59, 387 as of 2016. In 2011, the bank underwent a loss of 2 billion dollars caused by a rogue trader identified as director in the institution’s Global Synthetic Equities Trading branch (Shefrin, 2012). It only emerged later that the top management of the institution had failed to act upon information provided by the company’s computer system. While the rogue trader by the name Kweku Adobili was arrested and charged for fraud charges, the loss supposedly a huge loss for the company with its share price dipping with about 10.8 percent as compared with the stock price of other banks which rose with between 3 and 6 percent.
Overview of the Firm
The UBS Company has a history of 15 years with operations in over 50 countries spread across five continents. The company prides itself with a vast experience in managing investment portfolios of high end individuals. The company’s global strategy is focused on strengthening its wealth management branch while identifying and integrating synergies in the investment bank as well as Asset Management business units with the aim delivering outstanding solutions to its clientele base. The business wealth management approach is founded on the trust relationship of its financial advisors as s well as its customers. The company’s wealth management team combines insights gathered through global research professionals and local skills to offer clients access to superb investment decisions. Informed by strong investment process, the chief investment office insights assist customers to make better good investment decisions in a swift global market place.
According to the company, its global solutions are driven by the needs of the customers. It provides a wide array of solutions both from the inside and outside the company and regarding a wide variety of products and services. Today, the company remains strong with long-term credit ratings standing at 13.8 percent. The company’s capital position is also strong with its common equity tier 1 ratio remaining high among global banks. UBS is registered as a joint company under Swiss laws and its shares are listed at New York Stock Exchange and the SIX Swiss exchange. It can be noted that despite the bank having its origins in Switzerland, its main operations are in United States. The structure of the company includes a total of five divisions including wealth management, asset management, investment bank, personal and corporate banking and wealth management America...