UBS has chosen its former CEO, Swiss Sergio Ermotti, to lead the delicate mega-merger with Credit Suisse, decided on in an emergency and closely scrutinized by investors and politicians alike.
Sergio Ermotti, 62, is currently Chairman of the reinsurer Swiss Re. He was previously at the helm of Switzerland’s largest bank from 2011 to 2020. He managed to turn the establishment around after the 2008 financial crisis (which forced the federal state to implement a gigantic bailout). plan) and scandals, including losses from a dishonest trader.
The share of the Swiss banking giant UBS climbed 2.48% on Wednesday in the first exchanges to 18.18 Swiss francs (18.23 euros), after the announcement of this appointment.
quote well received
Sergio Ermotti will take up the post on April 5, after the bank’s general meeting, UBS said in a statement.
“The board of directors made this decision given the new challenges facing UBS after the announcement of the acquisition” of the number two bank in Switzerland, which threatened to collapse and cause widespread panic, the company explains.
UBS accepted the 19 March de racheter la deuxième banque du pays dans l’urgence sous la presion des autorités suisses qui voyaient la seul moyen d’éviter une catastrophe qui aurait durably affected the reputation of la place financière suisse et provoqué des remous dans the whole world.
But this merger, which will give birth to a gigantic bank across the country, also raises questions, particularly in terms of competition, weight in economic life and the preservation of thousands of jobs.
For the good of the country
Sergio Ermotti “will succeed Ralph Hamers, who has agreed to resign in the interest of the new combined entity, the Swiss financial sector and the country,” the bank insists.
However, Ralph Hamers, a 56-year-old Dutch banker, will stay with Sergio Ermotti during a transition period to “ensure the success of the transaction,” the bank insists.
Before heading UBS, Ralph Hamers led the Dutch banking group ING, which was also going through a difficult period after the 2008 financial crisis.
During his nine years at the helm of UBS, Sergio Ermotti had “rapidly transformed investment banking” by cutting back on its activities, initiating “a profound culture change” that had allowed “to regain the trust of clients and other stakeholders”. . , UBS said in the statement.
In a stock market commentary, Andreas Venditti, an analyst at Vontobel, hailed the return of Sergio Ermotti, saying he is “the right person for this difficult task” given “his experience” in turning UBS “successfully” after the 2008 financial crisis.
“UBS’s priorities have clearly changed, with the integration of Credit Suisse being the most important task,” the analyst added, noting that UBS already faces “significant political pressures due to its large size and importance to the country.”
Source: BFM TV
