Boss ousted in UBS bust-up

SWISS bank UBS has ousted president Luqman Arnold following a series of clashes with chairman Marcel Ospel, triggering a management shake-up across the group.

It said Arnold's departure reflected 'a number of differences of opinion' and that there were 'no financial, operational or control issues behind it'. Ospel added: 'We regret the necessity to make this leadership change.'

It is believed a personality clash is to blame for the falling out between the bank's top two. Ospel, who engineered UBS's mergers with Warburg, Dillon Read and PaineWebber, is seen by colleagues as a ruthless dictator who objected to conflicts of opinion with Arnold.

Arnold was chief financial officer at UBS until he stepped up to the top job this year, to replace Ospel in the slot. As a Briton, Arnold's appointment was hailed at the time as a progressive move by Switzerland's largest bank to bring a non-Swiss into its most senior management job.

He will be replaced by UBS Asset Management chief executive Peter Wuffli. John Costas has been promoted from chief operating officer to chief executive of UBS Warburg, moving from New York to London in the process. Markus Granziol will remain UBS Warburg chairman.

UBS' retail broking operations will become a standalone business under the PaineWebber banner, reflecting the bank's aim to widen its slice of the rapidly growing wealth management industry.