UBSG: Sergio Ermotti Back as UBS CEO to Guide Credit Suisse Deal

Less than two weeks since UBS agreed to buy Credit Suisse, the bank is bringing its old chief back.

• UBS announced it has decided to bring Sergio Ermotti back as chief executive to navigate the treacherous waters of the Credit Suisse takeover. Ermotti, who previously spent 9 years at the helm of UBS, will face the monumental task of integrating UBS’s closest rival in Switzerland.
• The shake-up at UBS highlights the challenging situation for the bank, which now needs to decide what to do with Credit Suisse’s investment-banking division as well as the wealth management corner. Both of these had massive cracks in risk control prior to the takeover deal.
• UBS’s current boss, Ralph Hamers, will step down by April 5. He was appointed to the role two years ago, succeeding Ermotti, who went on to lead insurer Swiss Re, where he was chair. Shares of UBS popped about 2% in early trading on Wednesday.