The Stamford Chamber of Commerce was welcomed to UBS Americas headquarters on Washington Boulevard on June 3 to hear UBS Americas CEO and Chairman Robert Wolf speak to regulatory reform and the return of financial institutions in the current economy.
The anticipated new federal banking regulations, he said, are needed.
Wolf also spoke about the importance of media and the access and spread of news and knowledge to the financial industry.
“In this industry you get a free education almost every day,” said Wolf. “You can look at the front page of any newspaper around the world and there”™s somebody on our trading floor using that information. Whether it”™s what”™s going on at BP, what”™s happening with Europe and Greece, what”™s happening in Israel and Afghanistan or in health care, news is something that people trade off of.”
Though UBS has kept its head above water, Wolf did talk about some of the lessons learned through the recession and financial chaos of the last few years. He spoke about the importance of running a business by having core values and services and not straying too far from what the business does well.
“What we have learned over the last three to four years is being everything to everyone everywhere is not a good way to run a business,” said Wolf. “We tried doing that.”
Wolf said analyzing what markets to be in was not the issue for UBS; it was having to learn a different industry each time the market would shift.
“Playing catch up is not a way to run a business,” said Wolf. “We got out of our game.”
UBS”™s game was securities and Wolf said the move away from its core was a mistake.
Wolf also serves as the sole adviser from Wall Street on President Obama”™s Economic Advisory Board.
“Washington and Wall Street have been hand in hand now for the last few years, with all the problems,” said Wolf. “We as an industry and an institution support the need for new regulatory reform. I know it seems like the whole industry is fighting it, but that”™s just not factual. There”™s a lot of spin.”
Wolf said the last time there was true regulatory reform was 1933 when the FDIC was formed.
“We all know today that the FDIC was probably one of the greatest things created in the United States,” said Wolf. “It insures all the departments and it”™s why we”™re all very comfortable having our money in the different banks. My guess is it”™s probably time again for regulatory reform. The question is: Are they making the right blueprint so that the next 75 years can be handled with very few problems like we”™ve had in the last few years.”
The financial industry regulatory reform bill ”“ technically the Restoring American Financial Stability Act of 2010 ”“ is expected to receive Congressional approval after the Senate bill that passed May 20 and the earlier version passed by the House are reconciled.
“I think it will make our industry better,” said Wolf.
