UBS brings back old CEO to supervise acquisition of Credit Suisse

In preparation for absorbing a problematic rival, Sergio Ermotti, who resigned in 2020, will rejoin the Swiss bank.

In response to widespread worries about the soundness of the financial sector, the Swiss bank UBS has announced the unexpected return of Sergio Ermotti to oversee the acquisition of its rival Credit Suisse.

From 2011 to 2020, Ermotti oversaw the turnaround of UBS following the global financial crisis.

On April 5, he will assume control once more, and his major responsibility will be to carry out the intricate merger with Credit Suisse that Swiss financial regulators pushed through in an effort to avert a disorderly collapse.

The £2.65 billion acquisition of Credit Suisse by UBS on Sunday has severely damaged Switzerland’s banking sector’s credibility.

The demise of Silicon Valley Bank earlier this month came before the turbulence surrounding Credit Suisse.

Authorities and investors from all over the world have been keeping a close eye on the situation due to worries that the financial problems could extend to the entire banking system.

Ralph Hamers, the bank’s current CEO, will leave the position after less than three years in it as a result of the bank’s decision to work with its former chief executive again.

He will work with Ermotti for a brief time as an “adviser.”

The bank claimed that Ermotti would be more qualified to handle its new priorities as a result of the takeover process due to his previous experience shrinking UBS’s investment bank.

According to Reuters, UBS chair Colm Kelleher stated at a news conference on Wednesday that stabilising the situation should come first and that some areas of Credit Suisse had a bad culture that UBS did not want to import.

READ MORE : Federal Reserve, other central banks agree plan to provide liquidity