UBS brings back past CEO with Credit Suisse deal ahead
Sergio Ermotti was USB's top executive for 9 years, led turnaround following 2008 global financial crisis
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UBS has decided to bring back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with the take-over of Credit Suisse.
Ermotti was the bank's top executive for nine years and led a turnaround following the 2008 global financial crisis.
He will take over next Wednesday from CEO Ralph Hamers. Hamers took the job in November 2020 and will remain at UBS during the transition period.
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Swiss bank UBS CEO Sergio Ermotti. (REUTERS/Arnd Wiegmann / Reuters Photos)
Ermotti is now chairman of insurer Swiss Re.
UBS pointed to Ermotti's experience in bringing big financial institutions together.
The $3.25 billion deal for Credit Suisse was quickly put together as two U.S. banks collapsed and jitters about long-running troubles at Credit Suisse led shares of the bank to tank and customers to pull out their money.
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Newly appointed Group Chief Executive Officer of Swiss Bank UBS Sergio Ermotti, right, UBS Chairman Colm Kelleher, left, speak during a news conference in Zurich, Switzerland Wednesday, March 29, 2023. (Michael Buholzer/Keystone via AP / AP Newsroom)
Swiss authorities urged UBS to take over its smaller rival after the central bank’s plan to let Credit Suisse borrow $54 billion did not reassure investors and customers.
UBS Chairman Colm Kelleher said 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 March 24, 2021. (Reuters/Arnd Wiegmann / Reuters Photos)
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"This is the biggest single financial transaction since 2008. That brings significant execution risk," Kelleher said on a conference call.
The Associated Press contributed to this report.