Marcel Ospel on Tuesday bowed to intense pressure and said he would not seek re-election as chairman of UBS, as Europe’s biggest casualty of the subprime crisis announced a further massive loss and its second capital increase in two months.

Mr Ospel, who has faced mounting criticism over his and the board’s failure to identify the bank’s huge exposure and its subsequent handling of the crisis, will be replaced by Peter Kurer, UBS’s general counsel.