GIC puts heat on UBS to take firm action on alleged fraudulent trading

As its largest shareholder, GIC is disappointed at UBS’ lapses relating to the $2.3b trading loss and urged UBS to take firm action to restore confidence in the bank.

GIC and UBS management discussed the alleged fraudulent trading that led to the large financial loss for UBS.

Following the meeting between Government of Singapore Investment Corp’s senior management and UBS Group CEO Oswald Gruebel, Government of Singapore Investment Corp expressed disappointment and concern at the lapses and urged UBS to take firm action to restore confidence in the bank.

According to a statement, GIC sought details of how UBS is tightening the control environment and looks forward to the conclusions of on-going investigations. GIC's view of UBS' fundamental strength as a well-capitalised bank with a strong private wealth management franchise remains unchanged.