2023-05-09 05:22:00
UBS wants to gradually take over the helm at Credit Suisse
The largest Swiss money house wants to keep its new subsidiary as its own bank for the time being. Bank boss Ermotti has filled most of the key positions with longstanding UBS managers. Only Credit Suisse boss Ulrich Körner remains on board.
Credit Suisse is to remain an independent bank for the time being.
Photo: Eddy Risch (Keystone)
Credit Suisse will initially remain an independent bank under the umbrella of UBS. The institute will initially keep its branches and customer relationships, UBS announced on Tuesday. Because the complete integration of the business areas will take time.
The previous Credit Suisse boss Ulrich Körner is also staying on board: he is moving into the UBS group management. With his knowledge of both banks, he should ensure that the business continues and support the integration.
Ermotti trusts in long-serving UBS employees
This makes him the only representative of Credit Suisse to hold a top position at UBS. UBS boss Sergio Ermotti has filled all other group management positions with long-standing UBS managers.
He relies on experienced people with whom he has previously worked at UBS. A key role is played by Beatriz Martin Jimenez, the previous head of UBS in Great Britain. In the future, she will head, among other things, the so-called Non-Core Unit of UBS. The assets from the Credit Suisse investment bank, which UBS wants to sell, will be located here.
This also includes the portfolio of toxic assets, for which UBS has agreed to a CHF 9 billion loss guarantee from the federal government.
Former UBS Chief Financial Officer Sarah Youngwood will be replaced by Todd Tuckner. Today he is the chief financial officer of the most important UBS division, global wealth management. Tom Naratil, most recently co-head of wealth management at UBS, was discussed as a possible chief financial officer, but is missing from the management team.
The integration of the two banks will be led by Michelle Bereaux as Group Integration Officer. She has held various positions at UBS for almost 23 years.
Stock market reacts positively
With the filling of the key positions, it is also clear to the outside world who will hold the reins at the new bank in the future. This applies in particular to risk management. In addition to the existing system at Credit Suisse, UBS wants to introduce new guidelines there “to ensure that the UBS Group can exercise effective supervision,” as it announced. The aim should probably be to curb Credit Suisse’s much greater appetite for risk.
“Together we will consolidate and represent the Swiss financial model worldwide – a business model that requires little capital, is no longer so dependent on taking risks and is anchored in stability,” said Ermotti.
The news was initially well received on the stock exchange. UBS shares rose slightly at the start of trading.
There was no news about possible job cuts for the time being. UBS expects the purely legal completion of the takeover “in the next few weeks”. According to Vontobel banking analyst Andreas Venditti, more information about further integration and restructuring can only be expected from then on. In his estimation, it will take years for Credit Suisse to be fully integrated into UBS.
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