Credit Suisse’s chief executive officer will join the executive board of UBS ahead of the Swiss Bank’s planned takeover of Credit Suisse.
UBS announced Ulrich Körner will become a member of the board following the completion of the deal, which is expected to take place in the next few weeks.
The $3.25 billion deal sought to prevent the downfall of Credit Suisse and calm investors’ concerns following the collapse of the Silicon Valley Bank in the US.
In his new role, Körner will be responsible for ensuring Credit Suisse’s operational continuity and supporting the integration process between the two banks.
Following his appointment, all existing Credit Suisse executive board members will report to Körner.
Sergio Ermotti, who recently returned to UBS as chief executive officer, said: “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry.
“Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service.”
UBS announced further leadership changes as Sarah Youngwood, chief financial officer, will leave the bank upon the completion of the acquisition. Youngwood will be succeeded by Todd Tucker, who was promoted from finance chief of the bank’s global wealth management business.
UBS also confirmed the two banks will operate separately for the foreseeable future despite being initially managed by UBS. Following the completion of the takeover, each bank will serve its own clients, deal with counterparties, and establish its own subsidiaries and branches.
The planned takeover has recently faced scrutiny as Credit Suisse investors sued the Swiss regulator after their investments were wiped out.
Switzerland’s federal prosecutor also opened an investigation into the deal as “numerous aspects of events around Credit Suisse” require an inquiry to identify any crimes.
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