Monday, 6 September 2010
UBS names McCann head of US wealth unit
Tuesday, 27 October 2009 at 13:55, Reuters, Zurich
Robert McCann, who starts work as head of Swiss bank UBS's U.S. wealth management unit on Tuesday, said he had no plans to sell the unit which has been battered by a high-profile tax row.
The appointment of the 51-year-old Merrill Lynch veteran at UBS Wealth Management Americas, which had net new money outflows of 5.8 billion Swiss francs ($5.8 billion) in the second quarter had been widely expected.
"I had to go to court against two of my former employers to be able ....to work with UBS," McCann said.
"I would have not done that if the whole goal was to sell the company."
UBS has been hurt by a tax row with the U.S. government, which was settled in August. It has also been hit by executive departures, bad bets on auction rate securities, writedowns, and other regulatory setbacks.
Second-quarter outflows at the U.S. unit compared with the first-quarter's net new money inflows of 16.2 billion francs.
"The appointment of a new man at the top won't change the fact that the U.S. wealth management unit remains strategically challenged," Helvea analyst Peter Thorne said.
McCann, who said his aim was to have a more nimble and more cost-efficient structure, held several executive positions in a 26-year career with Merrill Lynch.
The appointment should help the unit gain market share and increase profitability in a market worth more than $20 trillion, UBS said.
"Under Bob's leadership, I believe that the business will now consolidate its position as the firm of choice for those clients seeking a fully integrated offering of diverse products and tailored advisory services," UBS Chief Executive Oswald Gruebel said in a statement.
UBS bolstered its presence in the United States in 2000 with the $10 billion acquisition of PaineWebber Group. The bank reviewed all its business units in 2008 and considered a sale of the former PaineWebber among various possible business options, but dropped the idea.
McCann will lead nearly 8,000 financial advisors across the U.S., Puerto Rico and Canada, managing 695 billion Swiss francs ($692 billion) in invested assets.
The appointment of the 51-year-old Merrill Lynch veteran at UBS Wealth Management Americas, which had net new money outflows of 5.8 billion Swiss francs ($5.8 billion) in the second quarter had been widely expected.
"I had to go to court against two of my former employers to be able ....to work with UBS," McCann said.
"I would have not done that if the whole goal was to sell the company."
UBS has been hurt by a tax row with the U.S. government, which was settled in August. It has also been hit by executive departures, bad bets on auction rate securities, writedowns, and other regulatory setbacks.
Second-quarter outflows at the U.S. unit compared with the first-quarter's net new money inflows of 16.2 billion francs.
"The appointment of a new man at the top won't change the fact that the U.S. wealth management unit remains strategically challenged," Helvea analyst Peter Thorne said.
McCann, who said his aim was to have a more nimble and more cost-efficient structure, held several executive positions in a 26-year career with Merrill Lynch.
The appointment should help the unit gain market share and increase profitability in a market worth more than $20 trillion, UBS said.
"Under Bob's leadership, I believe that the business will now consolidate its position as the firm of choice for those clients seeking a fully integrated offering of diverse products and tailored advisory services," UBS Chief Executive Oswald Gruebel said in a statement.
UBS bolstered its presence in the United States in 2000 with the $10 billion acquisition of PaineWebber Group. The bank reviewed all its business units in 2008 and considered a sale of the former PaineWebber among various possible business options, but dropped the idea.
McCann will lead nearly 8,000 financial advisors across the U.S., Puerto Rico and Canada, managing 695 billion Swiss francs ($692 billion) in invested assets.
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