Ulrich Koerner, the CEO of Credit Suisse, will remain on when the Swiss rival is acquired by UBS Group (UBSG.S), according to a statement released on Tuesday. He will join a new executive team for the combined company.
In addition to announcing a change in leadership, UBS also announced the promotion of Todd Tuckner to organiser chief financial officer, replacing Sarah Youngwood, who will depart her position after the deal closes after one year on the job.
After recent banking sector instability led the nation’s No. 2 lender to the verge of collapse, UBS is taking a hold of Credit Suisse (CSGN.S) as a piece of a Swiss government-run rescue supported by as much as 250 billion Swiss francs (around $281.25 billion) in public backing.
Apart from Koerner, who worked at UBS for more than ten years until moving back to Credit Suisse in the year 2021, UBS CEO Sergio Ermotti heavily relied on UBS professionals to assemble his new team.
Several Credit Suisse bankers were rumoured to take up key positions at the new business, according to several media reports.
The new executive team led by CEO Sergio Ermotti amply represents the acquisition of CS by UBS. As said by Vontobel analyst and expert Andreas Venditti’s remark, there are less changes than anticipated.
In a statement about Koerner’s future responsibilities, UBS stated that Koerner will oversee the merger of Credit Suisse while supporting its continued operations and client focus. Members of the Credit Suisse executive board will answer to Koerner in addition to the appropriate UBS executive board member.
It is unknown if he will continue working when the merger is finished.
Now the focus is on UBS’s long-term strategic goals for the merged bank.
UBS reaffirmed that it will consider all possibilities for Credit Suisse’s Swiss enterprise, which now consists of wealth management, online and commercial banking, along with investment banking, and that it will share more information on this subject in the months to come.
A decision regarding the future of Swiss unit is anticipated to be made before the end of the summer, according to a person with knowledge of the situation. Given that Credit Suisse is fundamentally losing money, UBS needs to move quickly, according to the individual, who wished to remain anonymous because the conversations were private.
A sale or an IPO of Credit Suisse’s domestic division are two options being looked at for that business, as was revealed last week.
In April, Ermotti reverted to UBS to lead the largest banking transaction since the global-scale financial crisis, including the two largest banks in Switzerland, which collectively employ some 120,000 people globally.
Ermotti declared in the statement that this is a crucial time for UBS, Credit Suisse, and the broader banking sector.
Together, the group asserted that it could solidify and reflect the Swiss financial model, which is grounded in stability and high-touch assistance, is capital-light, and relies less on taking risks.
After the transaction’s legal conclusion, which UBS anticipates will take place in the upcoming weeks, UBS Group AG will oversee the management of the two distinct parent businesses, UBS AG & Credit Suisse AG, during the period of integration, which UBS has estimated may take three to four years.
Each institution shall continue to keep its own subsidiaries and/or branches, provide customer service, and conduct business with counterparties throughout that time.
This indicates that there won’t initially be any significant changes for the present Credit Suisse management, according to Zuercher Kantonalbank.
People believe that by using this strategy, larger disruptions will be prevented. The bank stated in its daily comment that the present CS managers’ employment situation will remain uncertain.
Tuckner, who had joined UBS in the year 2004 while being in KPMG, New York, has held a number of executive positions in the financial industry in both the US and Switzerland, according to UBS.
Additionally, it was revealed that numerous senior UBS managers will keep their positions while Michelle Bereaux, a UBS employee since 1998, would take on the role of group integration officer.
