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Unformatted text preview: • In 2009, the investment-banking sector tried to hire and take more risk to up their profits, but unfortunately the economy fell on hard times and the bank ended up a $57.1 billion pretax loss instead. • “They won’t be able to justify bonuses without profitability.” This is an effect of UBS introducing clawback provisions, which permit banks to pay out bonuses when units or the whole turn out to be unprofitable. • UBS has seen new lows in client activity, which is making it very difficult for them to turn a profit without more capital coming into their hands. http://www.bloomberg.com/news/2011-09-18/ubs-bonuses-at-risk-as-2-3-billion-trading-loss-erases-profit.html...
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This note was uploaded on 11/15/2011 for the course BLS 465 taught by Professor Herron during the Fall '11 term at Miami University.
- Fall '11