UBS announces Credit Suisse CEO Koerner to join board after emergency rescue

UBS on Tuesday introduced that Credit score Suisse CEO Ulrich Koerner will be part of the manager board of the brand new joint entity as soon as its emergency buy of the stricken financial institution completes.

The Swiss big stated the authorized shut of the acquisition is predicted inside the subsequent few weeks, and the mixed entity will function as a “consolidated banking group.”

The Credit score Suisse model will function independently for the “foreseeable future” as UBS integrates the enterprise in a “phased strategy,” the financial institution stated in a press release.

Swiss authorities brokered the controversial emergency rescue of Credit score Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over the course of a weekend in March, as a disaster of confidence amongst depositors and shareholders threatened to topple the 167-year-old establishment.

UBS confirmed that it’ll initially handle the 2 separate corporations upon the closure of the deal, with every establishment persevering with to function its personal subsidiaries and branches whereas the UBS board of administrators and govt board will maintain total accountability for the consolidated group.

Koerner, who took over the ailing Credit score Suisse in July 2022 and instantly launched a large strategic overhaul aimed toward reversing the financial institution’s persistent loss-making and threat administration failures, will be part of the board, UBS confirmed.

“Together with his data of each organizations, he shall be chargeable for making certain Credit score Suisse’s operational continuity and consumer focus, whereas supporting the mixing course of,” UBS stated.

UBS veteran Todd Tuckner will develop into chief monetary officer for the group, taking on from Sarah Youngwood, who has determined to step down after the transaction closes.

The mixed agency will function with 5 enterprise divisions, seven features and 4 areas along with Credit score Suisse, with every represented by a board member reporting to UBS CEO Sergio Ermotti.

Ermotti stated this was a “pivotal second for UBS, Credit score Suisse and the whole banking business.”

“Collectively we’ll solidify and characterize the Swiss mannequin for finance world wide, one that’s capital-light, much less reliant on taking threat and anchored by stability and high-touch service,” Ermotti stated in a press release.

“Including Credit score Suisse to UBS’s extremely capital-accretive enterprise mannequin, diversified income streams, disciplined threat administration and steadiness sheet for all seasons will profit our purchasers, workers, buyers, the economies we serve and the broader monetary system.”