According to Reuters, UBS Group AG has rehired former CEO Sergio Ermotti to lead the acquisition of Credit Suisse, in a surprising move. The decision to utilize Ermotti’s experience in restoring banks after the global financial crisis is seen as a strategic move, but he will be faced with the challenging task of dismissing thousands of employees, reducing the investment division of Credit Suisse, and reassuring wealthy clients that UBS remains a reliable haven.
Ermotti will take over as CEO of UBS on April 5th, having served as executive director from 2011 to 2020. UBS bought competing Swiss bank Credit Suisse as part of a merger organized by Swiss authorities to prevent a banking crisis.
This deal made UBS the only global bank that received support from the government in the form of state loans and guarantees, amounting to around 260 billion francs ($170 billion), making the Swiss economy more dependent on one creditor.
Shares of UBS rose 2.2% in early trading.