Bloomberg.com, 25 Mar 2009, Netty Ismail
March 25 (Bloomberg) -- Asia’s private-banking industry will experience a “big shakeout” as a global recession saps investors’ appetite for risk and drives down fees, according to UBS AG.
The Zurich-based bank, Switzerland’s biggest, and other firms will have to cut compensation, the biggest cost component of the business, said Tee Fong Seng, Head for Key Clients in Asia-Pacific at UBS’s wealth-management unit. Costs haven’t declined with revenue after the industry grew, “maybe a bit too aggressively,” in the last few years, he said.
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