Fiat Chairman Luca di Montezemolo (left) and CEO Sergio Marchionne (right) have both been very swift to dismiss reports linking the latter with the top job at giant Swiss banking group UBS.

Fiat Group CEO Sergio Marchionne's name has once more been linked to the top job at Swiss banking giant UBS, reports in the Italian media suggesting that the financial institution is set to approach him. Marchionne is already a member of the UBS board and has been linked to the CEO's position previously.

The report this week suggesting Marchionne could replace current 57-year-old UBS Chairman Marcel Ospel came from Italian financial newspaper Milanofinanza, which didn't attribute any sources to its story. And it comes just as the bank, the world's largest manager of private wealth, announced huge losses on Thursday as it unveiled its 2007 full year financial results.

Along with many other major international banks, UBS has made a string disastrous investments in the United States sub-prime mortgage market, and in the fourth quarter of last year it has written off over US$12 billion dollars of bad debt. Analysts suggest that UBS, which may be harder hit than most, could be forced to write down as much as US$18 billion this year as the sub-prime market continues to unravel.

Late last year Fiat Group's shareprice slid after rumours circulated that Marchionne, credited for the impressive recent turnaround in the Italian carmaker's fortunes, could be headed for UBS. However late this week both Marchionne and Fiat Group Chairman Luca di Montezemolo were quick to dismiss the latest stories. Marchionne firmly cast the rumours aside, telling reporters during a 200th anniversary ceremony at the Milan Bourse on Thursday that "we sell cars". Montezemolo meanwhile was as dismissive he said: "we're talking about going to the moon." A UBS spokesman also commented, saying yesterday: '"Marcel Ospel continues to enjoy the full trust of the board and key investors, we are currently not looking for a successor."

On Thursday UBS reported a net loss of CHF 4,384 million in full-year 2007, with a loss of CHF 4,785 million from continuing operations and a profit of CHF 401 million from discontinued operations. For the fourth quarter 2007, UBS reported a Group net attributable loss of CHF 12,451 million. Financial businesses contributed a loss of CHF 12,483 million to this result. "Last year was one of the most difficult in our history. During the first six months of 2007, UBS produced a net profit of CHF 8,897 million, which was a record for any six month period. While most of our businesses continued to be very profitable, the sudden and serious deterioration in the US housing market, in combination with our large exposure in sub-prime mortgage-related securities and derivatives, has driven us into loss for the year," said Marcel Rohner, UBS Chief Executive Officer.