- China offers $325 bn in fiscal stimulus for ailing economy
- Small Quebec company dominates one part of NHL hockey: jerseys
- Boeing to cut 10% of workforce as it sees big Q3 loss
- Want to film in Paris? No sexism allowed
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Little progress at key meet ahead of COP29 climate summit
- 'Party atmosphere': Skygazers treated to another aurora show
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Thunberg leads pro-Palestinian, climate protest in Milan
- Stock markets diverge before China weekend briefing
- EU questions shopping app Temu over illegal products risk
- Han Kang's books sell out in South Korea after Nobel win
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- Musk unveils robotaxi, pledges it 'before 2027'
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- On US coast, wind power foes embrace 'Save the Whales' argument
- At least 10 dead in Florida after Hurricane Milton spawns tornadoes
- Internet Archive reels from 'catastrophic' cyberattack, data breach
- Wall Street stocks retreat from records on US inflation data
- Israel strikes central Beirut, killing 22
- Solar storm could impact US hurricane recovery efforts: agency
- Delta eyes Election Day travel pullback as profits climb
- Florida battered by hurricane, floods but spared 'worst-case scenario'
- UK's William and Kate in first joint public engagement since cancer treatment
- Over 200 women in legal talks with Harrods over Fayed abuse claims
- A very stiff breeze: BBC says sorry for 20,000 kph wind forecast
- Musk finally unveiling his long-promised robotaxi
- London's Frieze art fair goes potty for ceramics
- US, Europe stocks fall on US inflation data
- US consumer inflation eases to 2.4% in September
- Hurricane Milton tornadoes kill four in Florida amid rescue efforts
- South Korea's Han Kang wins literature Nobel
- Ikea posts fall in annual sales after lowering prices
- Stock markets diverge, oil gains after China rebounds
- World can't 'waste time' trading climate change blame: COP29 hosts
- South Korean same-sex couples make push for marriage equality
- Mumbai declares day of mourning for Indian industrialist Ratan Tata
- 7-Eleven owner restructures to fight takeover
- Sri Lanka recovering faster than expected: World Bank
- Hong Kong, Shanghai rally as most markets track Wall St record
- Uniqlo owner reports record annual earnings
- Hong Kong, Shanghai rally as markets track Wall St record
- Indonesia biomass drive threatens key forests: report
UBS brings back Ermotti as CEO to lead Credit Suisse takeover
UBS announced Wednesday it was bringing back former CEO Sergio Ermotti to lead the Swiss banking giant's controversial acquisition of troubled rival Credit Suisse.
Ermotti spent nine years restoring UBS's reputation after its bailout by the Swiss government and the central bank during the 2008 global financial crisis, as well as the $2.3 billion in losses racked up by a rogue trader in 2011.
A UBS statement said he is due to take over on April 5 from current boss Ralph Hamers, who has agreed to step down but will remain at his side during a transition period.
"The task at hand is an urgent and challenging one," Ermotti, who is currently chairman of reinsurance giant Swiss Re, said in the statement.
"In order to do it in a sustainable and successful way, and in the interest of all stakeholders involved, we need to thoughtfully and systematically assess all options," he said.
Ermotti, 62, was CEO at UBS from 2011 to 2020. UBS shares opened 2.5 percent higher following the announcement of his return.
The marriage of UBS and Credit Suisse was hastily arranged by the government to prevent a global financial meltdown following fears of contagion from the collapse of three US regional banks.
The central bank has since admitted that the size of the resulting megabank could cause domestic problems in Switzerland.
UBS was already the biggest bank in the country -- and will now become even larger after swallowing up the second-most important lender in the wealthy Alpine nation for three billion Swiss francs ($3.25 billion).
- 'Ideally placed' -
Switzerland, whose vibrant banking scene is a key part of the country's culture, has been shocked to the core by the enforced merger.
A recent poll showed a majority of Swiss people reject the deal and blame Credit Suisse's leadership for the outcome.
Swiss financial regulator FINMA is probing how to hold Credit Suisse bosses to account.
The Swiss parliament is planning a special session on Credit Suisse in April. It is also exploring whether to create an investigative committee to determine who was responsible for the debacle.
"I am conscious of the uncertainty many feel," Ermotti said.
"I promise that, together with my colleagues, our full attention will be on delivering the best possible outcome for our clients, our employees, our shareholders and the Swiss government," he said.
UBS said in a statement that its board decided to bring back Ermotti "in light of the new challenges and priorities facing UBS after the announcement of the acquisition".
The bank said Ermotti was "ideally placed" to pilot the integration of Credit Suisse after he "successfully repositioned UBS following the severe challenges" of the 2008 financial crisis.
UBS said that in his previous stint as CEO, Ermotti "achieved a profound culture change within the bank which allowed it to regain the trust of clients and other stakeholders, while restoring people's pride in working for UBS".
Hamers said he was sorry to leave UBS but "circumstances have changed in ways that none of us expected".
"I am stepping aside in the interests of the new combined entity and its stakeholders, including Switzerland and its financial sector," Hamers added.
- Checkered past -
Credit Suisse was already embroiled in a series of scandals when its shares crashed on March 15 after the chairman of Saudi National Bank, its main shareholder, said his group would not up its stake in the Swiss lender.
A $54-billion lifeline from the central bank was not enough to stop the panic and the government brokered the weekend deal with UBS on March 19.
UBS and Credit Suisse were both among the 30 banks around the world deemed too big to fail and therefore considered Global Systemically Important Banks.
Credit Suisse was undergoing major restructuring before the takeover to repair trust after the implosion of the US fund Archegos in 2021, which cost the lender more than $5 billion.
That same year, its asset management branch was rocked by the bankruptcy of British financial firm Greensill, in which some $10 billion had been committed through four funds.
C.Peyronnet--CPN