UBS CEO resigns over $2.3 bn loss

Oswald Gruebel feels that it is his duty to assume responsibility for the recent unauthorized trading incident.

Swiss bank UBSs Chief Executive Oswald Gruebel resigned on Saturday,shouldering the blame after its scandal-hit investment banking business lost $2.3 billion in alleged rogue trading.

The bank,which said it would beef up risk controls under an accelerated restructuring of that part of its business,named its Europe,Middle East and Africa head Sergio Ermotti to replace Gruebel on an interim basis.

Oswald Gruebel feels that it is his duty to assume responsibility for the recent unauthorized trading incident. It is testimony to his uncompromising principles and integrity, UBS Chairman Kaspar Villiger said in a statement.

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Gruebel,a 67-year-old former trader who helped turn around Credit Suisse a decade ago,was brought out of retirement in 2009 to try to revamp UBS after it almost collapsed in 2008 under the weight of more than $50 billion lost on toxic assets.

Ermotti,who Villiger said was a strong candidate to replace Gruebel permanently,told a conference call with journalists the bank would review its risk controls at group level,and an internal investigation of what went wrong at the investment bank should conclude within 14 days.

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