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CommentsAfter a stint heading UBS’ American division for wealth management, Joseph Grano encouraged leaders of the company to emancipate Paine Webber. His suggestion ultimately fell on deaf ears.
In a July 2009 interview with Bloomberg, Grano alleged that senior officials at UBS refused to hear him out. The company, under former chairperson Marcel Ospel, had taken over Paine Webber in 2000.
Grano recounted how he sent missives urging Ospel and ex-CEO Marcel Rohner to spin off Paine Webber and brand it separately. He additionally recommended using the proceeds for an employee stock-ownership plan.
“It wasn’t a definitive offer, it was something for them to consider, but the message was clear…let’s talk,” said Grano. “They didn’t even have the courtesy to respond to the letter.”
Joseph Grano had led Paine Webber prior to its merger with UBS, which was orchestrated by Ospel for $11.5 billion. For three years since, Grano was retained as CEO of UBS Wealth Management USA. Ospel quit in 2008, but not before renaming the entire company to UBS AG.
Now chief executive of his own advisory firm, Centurion Holdings LLC, Grano has also commented on rumored management realignments at UBS. He thinks Robert “Bobby” McCann would make a “great” replacement for Marten Hoekstra, who currently occupies Grano’s former UBS seat.
“I think he’d be a big help to the franchise if they were smart enough to choose him,” said Joseph Grano.
McCann was the previous chief executive of Merrill Lynch’s wealth management division. He resigned after Bank of America bought the ailing firm in January.
Said to be the world’s premier wealth manager, UBS AG has now assumed the most write-downs for any bank based in Europe. The quintessential Swiss bank’s wealth managers have lost some $125 billion since May 2008. Around the same time, US Justice Department officials revealed a probe linking some high-profile tax evaders to UBS accounts.
Post Author: guest