Former UBS president wants bank to split off investment unit

A former president of UBS AG urged the Swiss bank to change its business strategy and split off the investment banking unit as a result of massive losses resulting from the subprime crisis.

Luqman Arnold's proposal comes after UBS reported writedowns of US$37.4 billion (euro23.65 billion) for the past nine months _ so far the largest reported by any bank as a result of rising U.S. defaults on risky mortgages.

"We are not convinced that the 'one bank' integrated business model that has served UBS well in the past will survive the damage inflicted by the proprietary trading losses and writedowns," Arnold said in a letter from his London-based …