This one single quote from UBS Financial Head John Cryan says it all. His name says it all. The only one "CRYAN" are the shareholders.
"I would like to see our regulatory value at risk go up a bit because I would like to see us put a bit more risk on the table and trade a bit harder."
Such is life. What? losing $553MM in the 3rd Quarter was not enough? You are going for $1B next quarter?
This is what happens when the state prints money and hands it over to bankers. UBS would never ratchet up the leverage/risk if it was their money at stake currently.
It is befuddling to me that UBS can't make money with rates near zero. It just goes to show you how bad the banks are really run. Don't be surprised to find out billions in Swiss tax payer money including Roger Federer's will be used to pay Mr. Cryan's bonus in February 2010.
UBS has to take on more risks simply as a way of survival. They have curtailed risk taking because of the flight of capital. This is what they do for a living.
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