STAMFORD - UBS, Switzerland's largest lender and Stamford's biggest employer, squashed rumors today that it would relocate to New York and pledged to remain in Connecticut for the next five years.

Gov. Dannel Malloy (D-C.T.) and Stamford Mayor Michael Pavia were at the bank's headquarters for the announcement, along with company officials.

The announcement was spurred by a deal reached with the state that allows the company a $20 million "forgivable" loan, officials say.

The bank's promise comes on the heels of its plan to eliminate 3,500 jobs around the globe. UBS says nearly half of those cuts will come from its investment banking division.