Credit Suisse Group CEO Ulrich Koerner is interviewed by Bloomberg Television in London, Britain, Tuesday, March 14, 2023.
Holly Adams | Bloomberg | Getty Images
UBS announced on Tuesday, credit suisse Chief executive Ulrich Koerner will join the executive board of the new joint entity once the emergency takeover of the stricken bank is completed.
The Swiss giant said the acquisition is expected to be legally completed in the coming weeks and the combined entity will operate as a “universal banking group”.
In a statement, the bank said the Credit Suisse brand would operate independently for the “foreseeable future” as UBS integrated the business in a “phased manner”.
Swiss authorities facilitated UBS’s controversial 3 billion Swiss franc ($3.37 billion) bailout of Credit Suisse over a March weekend as a crisis of confidence among depositors and shareholders threatened to topple the 167-year-old institution.
UBS confirmed that following the closing of the transaction, it will initially manage the two separate companies, with each institution continuing to operate its own subsidiaries and affiliates, while the UBS board and executive board will have overall responsibility for the combined group.
UBS confirmed that Koerner, who took over at struggling Credit Suisse in July 2022 and immediately launched a sweeping strategic overhaul aimed at reversing the bank’s chronic loss-making and risk-management failures, would join the board.
“With his knowledge of both organizations, he will be responsible for ensuring Credit Suisse’s operational continuity and client focus, while supporting the integration process,” UBS said.
UBS veteran Todd Tuckner will become the group’s chief financial officer, replacing Sarah Youngwood who has decided to step down after the deal closes.
In addition to Credit Suisse, the combined company will have five business units, seven functional units and four regions, each represented by a board member, reporting to UBS Chief Executive Sergio Elmo Reporting from Sergio Ermotti.
Ermotti said this was “a pivotal moment for UBS, Credit Suisse and the banking industry as a whole”.
“Together we will consolidate and represent the Swiss model of global finance, one that is light in capital, less dependent on risk and based on stability and high-touch services,” Ermotti said in a statement.
“Adding Credit Suisse to UBS’s highly capital-appreciative business model, diversified revenue streams, disciplined risk management and season-ready balance sheet will benefit our clients, our employees, our investors, the economies we serve and the wider financial system.”
