Demonstrators have protested outside the headquarters of Swiss bank UBS against high executive salaries and a $60 billion state rescue plan.

Thousands of demonstrators gathered in central Zurich on Saturday following an appeal for action by Swiss trade union, the USS. Organizers claim that up to 3,500 people attended the demonstration.

Paul Rechsteiner, president of the USS, declared that the "neo-liberal rip-off system" had failed adding that it was morally bankrupt and a danger to democracy.

"This gigantic sum was given to a single bank by emergency law," Rechsteiner said, referring to the $60 billion rescue plan for UBS unveiled by the Swiss government in return for a 9.3 percent stake in the banking giant.

"The same people are telling us that we can't afford a few hundred million for pensions," he added.

In a report to share-holders to be presented later this month, UBS announced that it is considering repaying bonuses to staff, in a move that further fuelled anger against the banking giant.

A senior UBS executive has also been accused of conspiring to defraud the United States of tax revenues and hiding $20 billion dollars of assets from the Internal Revenue Service (IRS).

UBS has been hit particularly hard by the global economic crisis and clients withdrew over $70.1 billion from July to September.

WR/CW/RA