UPDATE: UBS Hires Stewart From BofA As Co-Head Of Global Equities-Memo

Stewart will join UBS in late October from Bank of America
-- Bouhara to focus on aligning UBS' interests in emerging markets across seveal businesses
-- Personnel moves follow tough second quarter for UBS
(Updates with background information on UBS in Brazil in the sixth paragraph and information on the company moving some staff to New York City from Connecticut in the last graph .)
By Brett Philbin
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--UBS AG (UBS) hired Mike Stewart from Bank of America Merrill Lynch as co-head of global equities, replacing Yassine Bouhara, who will shift to a new role as head of emerging markets in October.
Carsten Kengeter, CEO of the investment bank, said in a memo that Stewart will become co-head of the equities business with Francois Gouws. They will be "driving our growth strategy for equities globally, and will lead our securities businesses in the Americas," he said in the memo reviewed by Dow Jones Newswires.
Stewart will join UBS in late October when he completes garden leave, the time period when an employee is often told to stay away from work, while still remaining on the payroll at his former employer.
At UBS, Stewart will also become head of Securities Americas.
In his new role, Bouhara will focus on "linking and leveraging" UBS' capabilities across its investment bank, fixed income, global capital markets and equities businesses in targeted markets.
UBS had a major presence in emerging markets, particularly in Brazil, before the subprime mortgage meltdown. The company then pulled back in the region, but later re-rentered Brazil with its acquisition of brokerage firm Link Investimentos.
Both executives will report to Kengeter and will be on the executive committee of the investment bank.
The appointments follow a tough second quarter for the Swiss bank. On Thursday, UBS scaled back ambitions to rebuild its investment bank into a global heavyweight, as the firm's net profit fell by half in the second quarter, hurt by a sharp drop in its fixed-income business. Within the U.S., UBS has dealt with an exodus of investment-banking talent. The Wall Street Journal reported June 1 that at least 17 senior U.S. bankers, including Cary Kochman, former co-global head of mergers & acquisitions, defected to rival firms over the prior four months. Many departures have stemmed from complaints about low compensation.
Recently, UBS also moved 50 professionals in its "cash trading" group to one of its midtown New York City offices from Stamford, Conn. as part of a broader plan to relocate a couple of hundred equities employees to the city, according to a person familiar with the situation.
Despite that small personnel shift, UBS still plans to maintain a presence in Stamford, this person said.