As you are all aware, resolution of the unauthorised trading incident, with appropriate remedial action, is my highest priority. The investigations are ongoing, but we have enough information from the preliminary internal investigation to take initial actions.

I have accepted the resignations of Francois Gouws and Yassine Bouhara as Co-Global Heads of Equities, with immediate effect, as they feel they should accept overall responsibility for the effective management of the Equities business. I have asked Mike Stewart, who recently joined us from BofAML, to assume the position of Global Head of Equities, effective today, and he has already begun work in New York. Don Francese has been asked to take on the responsibility of COO for Global Equities ad interim, also effective immediately.

A number of front office staff have been suspended pending further disciplinary action. We will also be taking appropriate disciplinary measures against responsible individuals in our operations and control functions in the coming weeks.

We are already taking certain actions to further strengthen the overall risk and control framework at the Investment Bank, and will implement a redefinition of mandates, processes and procedures where necessary, as well as tighter enforcement of those already functioning properly. We will execute these actions with urgency and accuracy so UBS is able to move forward with confidence.

The losses incurred by UBS Investment Bank have been shown to be the result of activities carried out over a period of three months, and are limited to $2.3bn as previously announced. The independent investigations are ongoing and we are cooperating fully with these efforts. We will be briefed on all findings when available and are committed to implementing all appropriate recommendations from those reviews. I assure you that we will take all necessary steps to regain the trust of our clients and stakeholders and to restore the reputation that we have worked so hard to build over the last 2 years.

The solidarity and determination that has been demonstrated by all of you over the past few weeks has been remarkable and is much appreciated. The overwhelmingly positive and very tangible support received from our clients is equally telling of the quality of our underlying business franchises at UBS Investment Bank. It is critical at this point in time that we do not lose sight of our strengths, of our client needs and of the teams that are performing in tough markets. I ask you to please stay vigilant and never hesitate to raise any concerns or suggestions to your line management or to me directly, as we must move forward together with deep organisational commitment to deliver real value from a solid foundation of control and collaboration.

We continue to align our strategy with the new economic and regulatory environment so that we can contribute meaningfully to the distinctive strengths of UBS as a Group. This means further investing in areas that make economic and strategic sense, exiting those that don't, and finding new ways to deliver much more effectively in others. I look forward to working with you to achieve this.

I thank you for your ongoing commitment and ask you to actively support Mike Stewart in his new role, as well as his senior management colleagues, in the drive to achieve our overall business objectives.

Carsten Kengeter