His former position was taken over by Huw Jenkins, a long-time legacy UBS investment banker.[126] In 2006, UBS bankers Blair Effron and Michael Martin announced their departures.[127][128] In March 2007, Moelis announced that he was leaving the company, and shortly thereafter founded a new business, Moelis & Company.[129] As he had when joining UBS, Moelis took a large team of senior UBS investment bankers.[130][131] Moelis's departure was caused primarily by repeated conflict over the availability of capital from the bank's balance sheet to pursue large transactions, particularly leveraged buyouts.[132] The bank's apparent conservatism would be turned on its head when large losses were reported in various mortgage securities rather than corporate loans that generated investment banking fees.