After spending four months trying to hammer out project-finance strategy at the new UBS/SBC, Chuck Zabriskie, global head of the business at UBS, thought he'd finally struck a deal with the SBC-dominated board. He had, colleagues say, managed to retain his business structures and staff numbers, even though SBC pulled out of project finance three years ago. It looked like a small victory for the demoralized UBS footsoldiers.
But nothing is what it seems inside Switzerland's new banking monolith. Almost immediately Zabriskie was told the deal was off and that the strategy was to be re-reviewed. Worse was to follow for one of the industry's most dedicated and professional players. According to a UBS source, the new strategy was to revolve around the sale of the project-finance portfolio and new business.
Deeply saddened though he was, Zabriskie, says an insider, believed that the decision was final and so sent an internal memo to his staff.
He was clearly having trouble getting to grips with the bank's new decision-making process. Within 48 hours, the board issued its own memo. The bank, it said, had not decided on its project-finance strategy. It was still committed to the business and would not be selling it off.