The ‘one bank’ model, bringing investment and private banking under one roof, has recently been challenged by poor investment banking performance.
UBS is the prime example. The Swiss bank and world’s leading wealth manager, which is undergoing a US tax investigation, has suffered $38bn losses since the subprime crisis began – the highest figure for a European bank. This has unnerved both clients and shareholders, and some have been more vocal than others. Private equity group Olivant, led by former UBS president Luqman Arnold, has called for a split between the wealth management and investment banking operations.
