UBS Wealth Management Americas Profits Drop 94%
On Tuesday, UBS Wealth Management Americas reported that their pretax profits plummeted 94% year-over-year as the firm racked up millions in litigation and recruiting expenses. UBS stated that its wealth management unit brought in $300 million in pretax profits. The bank’s sale of Puerto Rico bonds and closed-end funds cost the firm approximately $284 million in the form of settlements or arbitration awards. UBS said its aggregate client complaints add up to $1.5 billion. The Department of Justice is also allegedly conducting a criminal inquiry into the impermissible reinvestment of non-purpose loan proceeds. UBS also expanded its advisor ranks by 151 Fas during the fourth quarter, raising its total advisor force to 7,140. Many of the new recruits joined from Credit Suisse, and because of this aggressive recruiting, the bank’s expenses were raised and recruitment loans to financial advisors increased 9% to $3.179 billion. UBS also stated that the recruiting and strong growth from existing advisors helped boost net new money for the quarter, which rose to $16.8 billion from $5.5 billion from the year-ago period.
The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (10 S. LaSalle, Suite 3500, CHICAGO, IL 60010, 312.332.4200). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.