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UBS's Orcel Says Investors Doubting Industry Profitability

  • Investment banks under pressure to reshape models, Orcel says
  • Orcel says combination of global factors sapping confidence
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UBS's Orcel: 'Seismic Change' in Banking Industry

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Andrea Orcel, head of UBS Group AG’s securities unit, said tougher financial regulation and negative interest rates are sapping global confidence as investors question investment banks’ ability to earn money.

The U.S. election, Britain’s referendum on European Union membership, Russian sanctions and the migrant crisis are among factors that put “everyone in a position of wait and see,” Orcel said in an interview with Bloomberg Television’s Erik Schatzker in New York on Friday. “The pressure has never been as high to reshape our model to something that can hold water and convince our shareholders that it’s worthwhile investing in us.”