UBS Rehires Ex-CEO, Sergio Ermotti To Handle Credit Suisse Takeover

Ex-CEO Sergio Ermotti has been rehired as the CEO by UBS Group AG to handle the massive takeover of neighbour Credit Suisse, as per a Reuters report. It is a suprising move by UBS indents to take advantage of his experience in rebuilding the bank after the global financial crisis.

"The board took the decision in light of the new challenges and priorities facing UBS after the announcement of the acquisition," UBS added.

Current CEO Ralph Hamers who had succeeded Sergio Ermotti in November 2020, was ditched as he had no big-ticket M&A experience under his belt and faced the task of combining two banks with $1.6 trillion in assets, more than 120,000 staff and a complex balance sheet.

"He has agreed to step down to serve the interests of the new combination, the Swiss financial sector and the country," UBS said in a statement. He was not present when the announcement of UBS's takeover of Credit Suisse on March 19.

The takeover deal is backed by the government, central bank and regulators as guarantees and funding of more than 200 billion francs ($217 billion) of state cash.

Sergoi is currently the chairman of Swiss Re, he will take as the CEO helm from April 5. Earlier he served as the chief executive of UBS from 2011 to 2020. "The key challenges will include laying off thousands of staff, cutting back Credit Suisse's investment bank and reassuring the world's wealthy that UBS remains the best place to park their cash", as per the report.