UBS Group AG has re-hired experienced banker Sergio Ermotti to hand over Swiss credit taking over in the hands of a person who already has experience in restoring the bank after the crisis, writes the news agency Reuters.
The marketer-turned-master of fixing corporate mistakes now faces a tough task: laying off thousands of employees, downsizing Swiss credit investment portfolio and must convince the world’s rich and powerful that UBS joros are a safe place to keep their funds.
Ermotti will replace Ralph Hamers, and the chairman of the board of UBS has indicated that the reason for this decision is the need to give the job to the one who will do it best. Ermotti has been invited back because he will be in the best position to assess the biggest event in the financial world since the international crisis that hit the world more than a decade ago.
Ermotti, who was the CEO of UBS from 2011 to 2020, will take up the position from April 5.
He told reporters that patience is needed now and the bank should be given a few months to develop a strategic plan. The 62-year-old banker returned to UBS, as he said, out of duty, adding that he had always wanted to be involved in a deal as big as Swiss credit taking over. He will take over just weeks after UBS took over its rival in a surprise deal. The takeover was facilitated by the Swiss authorities, who wanted to avoid the chaos they were causing Swiss credit problems.
The takeover has made UBS Switzerland’s only international bank backed by a government loan worth about $170 billion. It’s a risky move that makes the Swiss economy dependent on one leading player.
Experts point out that Ermoti’s experience in the 2008 crisis makes him a suitable candidate for the task. Hammer, who alone took Ermoti’s place in 2020, has agreed to resign for the sake of a successful merger of banks and the interests of the state.
Read also: Swiss credit bailout shakes the world financial market
