Business News

UBS brings back previous CEO with further Credit Suisse deal

Former Federal Reserve governor Robert Heller, Solus Alternative Asset Management strategist Dan Greenhaus and Zay Capital Markets CIO Naeem Aslam discuss the Fed’s rate hike trajectory as Credit Suisse volatility threatens global markets.

UBS has decided to bring back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with its acquisition of Credit Suisse.

Ermotti was the bank’s top executive for nine years and led its turnaround following the 2008 global financial crisis.

He will take over from CEO Ralf Hammers next Wednesday. Hamers took up the job in November 2020 and will remain at UBS during the transition period.

UBS enters into agreement to buy Credit Suisse after raising offer

Sergio Ermotti, CEO of Swiss bank UBS. (Reuters/Arnd Wegmann/Reuters Photos)

Ermotti is now chairman of insurer Swiss Re.

UBS pointed to Ermotti’s experience in bringing together large financial institutions.

The $3.25 billion deal for Credit Suisse was quickly put together as two US banks collapsed and long-running troubles at Credit Suisse sent the bank’s shares plummeting and customers pulling out their money.

Credit Suisse to borrow up to $54B from the Swiss National Bank

Swiss bank’s newly appointed Group Chief Executive Officer UBS Sergio Ermotti, right, speaks during a news conference with UBS President Colm Kelleher, left, in Zurich, Switzerland, Wednesday, March 29, 2023. (Michael Buholzer/Keystone Via AP/AP Newsroom)

Swiss authorities urged UBS to step down after the central bank failed to reassure investors and customers over plans to borrow $54 billion from Credit Suisse.

UBS chairman Colm Kelleher said on Wednesday that he called Ermotti shortly after the emergency deal was arranged on March 19.

The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich on March 24, 2021. (Reuters / Arndt Wiegmann / Reuters Photo)

Americans’ trust in banks plummets after failures: Survey

“This is the largest single financial transaction since 2008. It brings significant execution risk,” Kelleher said on a conference call.

The Associated Press contributed to this report.


Back to top button