The Swiss Federal Banking Commission (SFBC) is preparing material on behalf of the the Swiss Exchange (SWX) and Securities and Exchange Commission (SEC) ahead of an official investigation. A spokesman for the SFBC commented: "I can confirm that we are co-ordinating preparation for an investigation ... into whether announcements made by UBS are in line with stock exchange laws in Switzerland." The regulators are expected to look at whether price-sensitive announcements made by the bank over the past year, including those issued last week, were disclosed in a timely fashion...

And yesterday, the news that the bank's expecting to cut 3,000 investment bank jobs in London and New York - perhaps in advance of a sale. Even Luqman Arnold wasn't calling for the investment bank to be sold off completely. And with its cargo of radioactive waste, would it get a buyer - at any price? Perhaps the management is hoping for the Swiss government to step in and provide a few billion in easy loans or concessions to sweeten the deal. But if it's a breakup and sale of the investment bank arm alone - rather than a complete sale of the iconic UBS to a (potentially foreign) bidder - how keen will the government be to preserve it? Heaven knows they went to heroic lengths to try to save Swissair back in 2001 (I was there) but will UBS Investment Bank have the same resonance to the heads of Switzerland SA?