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UBS to cut bonus pool, posts quarterly loss on Libor fine

UBS AG cut its 2012 bonus pool 7 percent and enacted changes to its compensation framework including longer deferral periods and bonds that can be written off if capital falls below required levels, the Swiss banking giant announced Feb. 5.

The bank’s bonus pool of 2.5 billion Swiss francs ($2.75 billion), which includes 2012 bonuses and compensation deferred to future years, represents a 42 percent decline from the 2010 total.

UBS, whose North American headquarters is in Stamford, also announced this morning that it posted its second straight quarterly loss in the fourth quarter of 2012, attributing the current earnings decline in part to a fine for attempting to rig interest rates.

The company’s net fourth quarter loss attributable to UBS shareholders was 1.9 billion Swiss francs ($2.1 billion), which UBS said was primarily due to charges for litigation, regulatory and other matters, as well as restructuring charges. The Zurich-based bank plans to cut 10,000 jobs over three years.

Analysts had called for a net quarterly loss of 2.16 billion francs ($2.38 billion). UBS reported a profit of 323 million francs ($355 million) in the fourth quarter of 2011.

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