Shareholders in UBS are livid that the bank they had to give $46 billion to in order to survive the credit crunch is ready to report another $2 billion in losses.
The massive bad trade that shook the Swiss bank yesterday is likely to force management to rethink its investment banking operations from the ground up, analysts say.
While there will be those who hope this will also encourage UBS to sell off its U.S. wealth management unit, that's actually less likely than ever now.
The wealth managers are still pumping a lot of cash into this company and have not been a major regulatory problem.
The investment bank -- and especially its ambitious proprietary trading desk -- have not been making much rain and are now evidently a huge risk factor.
We already know that UBS is still hiring advisors even though it has announced fairly extensive layoffs for the investment bank side. Yesterday's news doesn't change that equation.