UBS is putting its equity and debt businesses closer together than at any time in the past in a radical shake up of its investment banking business, after it became the second bank in 24 hours to slash jobs as a result of the US mortgage-market induced credit crunch.

Marcel Rohner, chief executive of UBS, who took personal charge of the Swiss bank’s investment banking operation last year, has declared sweeping changes to the group's investment bank, which will combine its equities and debt businesses into a single capital markets division for the first time.