UBS CEO Gruebel quits over 'rogue-trader' loss

Oswald Gruebel, the chief executive of Swiss bank UBS, has resigned over an alleged £1.5bn ($2.3bn) rogue-trading loss.

The move is part of a major shake-up at the bank which will also see it shrink its investment banking division to reduce risks, the BBC reports.

"Oswald Gruebel feels that it is his duty to assume responsibility for the recent unauthorised trading incident," Chairman Kaspar Villiger said.

London-based trader Kweku Adoboli has been charged over the affair. He was arrested last week and charged with fraud and false accounting. Adoboli has been remanded in custody until 20 October.

The bank's board said it would adopt "mitigation measures" to deal with any failures. Chairman Villiger also promised the bank would be more 'client centric' in future, according to the BBC.

"The investment bank will be less complex, carry less risk and use less capital to produce reliable returns," he said.

Villiger praised the work of Mr Gruebel, 67, since he was brought out of retirement in 2009 to reform UBS after it almost collapsed under the weight of more than $50bn of toxic assets.