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UBS traders quit on losses
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November 20, 1997: 8:28 a.m. ET
Equity derivatives unit has a shakeout after losses of more than $350 million
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NEW YORK (CNNfn) - Four Union Bank of Switzerland equity derivatives employees have resigned in the wake of trading losses in that division, the company confirmed Thursday.
The first to leave was Remy Goldstein, head of the equity derivatives London unit, followed by three traders in New York.
UBS officials wouldn't comment on the amount of the losses, but estimates have put them at about $350 million to $425 million for the first nine months of this year.
Earlier this year, the bank had warned shareholders in a letter that its equity derivatives unit had turned in an "unsatisfactory performance."
It cited valuation adjustments on trading positions and difficult market positions in Japan as the reasons for the losses.
Those losses resulted in a 52 percent decline in its first-half trading income, UBS said when it released earnings results last week.
However, overall performance for the company was still strong for the first nine months of the year, with profits rising 88 percent from the same period a year ago.
UBS is one of Switzerland's big three banks, with 389 branches worldwide.
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