The Swiss banking giant UBS has chosen to bring back its former CEO, Sergio P. Ermotti, to manage the intricate buyout of the distressed Credit Suisse, which it agreed to do last week.
After nine years at the helm of UBS, Sergio Ermotti was replaced by Ralph Hamers.
Recently, however, the Board of Swiss Re decided Ermotti would be a better leader for UBS than Hamers, in the wake of Credit Suisse’s CHF 3 billion deal.
This was due to the fact that Credit Suisse’s investors had lost faith in the company’s ability to recover from a difficult situation that had been made worse by bank troubles in the US.
Their shares dropped 67% in 2020 and 72% this year, leading to UBS taking over their crosstown rival last week.
Ermotti expressed his delight at being selected to head the bank at a critical period for Switzerland and its stakeholders. He thanked Hamers for the remarkable leadership he provided at UBS. He affirmed the difficult and pressing nature of the mission before him.
I am conscious of the uncertainty many feel and I promise that, together with my colleagues, our full attention will be on delivering the best possible outcome for our clients, our employees, our shareholders and the Swiss government.
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