How did Swiss Bank Corporation and Union Bank of Switzerland fare following their merger into modern-day UBS? finews.asia publishes the second installment of UBS' Robert Vogler's look back.

This is the second of a two-part look back by former UBS banker and historian Robert Vogler. Click here to read the first installment.


 All told, UBS didn’t actually earn money in the first ten years following the merger. Sixty-two billion francs in profit are set against 86 billion in spending, including the Paine Webber and Pactual deals but also countless smaller deals as well as share buybacks worth more than 26 billion francs.

This left UBS’ capital extremely vulnerable during the financial crisis. Since then, shareholders have suffered. The main beneficiaries have been top-level bankers drawing exorbitant bonuses.

American Mentality

An American banking mentality circulated in Switzerland following the merger, helped by UBS’ rapid and acquisition-fueled growth. Unfortunately, instead of buying loyalty, UBS attracted bankers after a quick reward.

UBS USA 500

UBS even missed the mark with its intended name, «United Bank of Switzerland». That moniker was protected, so the dealmakers instead agreed on UBS – an abbreviation which doesn’t actually stand for anything.