a.) It is very possible for UBS to profit from both sides of the equation. They keep the shorters happy by helping them drive down the share price and profit from their positions, collecting their lending fee regardless, and also partake in the subsequent - almost inevitable in my view - recovery for the longs (who, by definition, have a longer term investment horizon).
b.) We have seen enough businesses come undone or capitulate entirely because of the actions of a few, or some bad decisions made by entire departments. This century alone is littered with events of this nature, so I wouldn't put it past the executives at UBS to be capable of the same. They may not see the insides of a jail cell, and may have even profited handsomely themselves, but I digress.
c.) RFG has been very good to me (and I suspect a lot of other long-term holders), both from a capital gain and a dividend perspective, so it has been far from a bad investment decision, though I can only speak for myself on this front.
