UBS boss resigns after Credit Suisse deal “in the interests of Switzerland”.

Former CEO and newly appointed advisor Ralph Hamers adjusts the jacket of Sergio Ermotti, the newly hired CEO of UBS Group AG, as he sits next to UBS President Colm Kelleher – REUTERS/Stefan Wermuth

UBS drafted the chief executive who helped it recover from the financial crisis to steer the bank through the takeover of Credit Suisse.

Sergio Ermotti, who led the Swiss lender for nine years through 2020, will replace Ralph Hamers less than two weeks after the change by regulators Emergency takeover of UBS’s fiercest rival.

UBS said the move was “taken in light of the new challenges and priorities UBS faces following the announcement of the acquisition,” citing Mr. Ermotti’s experience in restructuring his investment bank earlier.

The bank said: “This unique experience, combined with his deep understanding of the financial services industry in Switzerland and globally, puts Sergio Ermotti in the ideal position to drive the integration of Credit Suisse.”

The shock comes after UBS agreed to take over Credit Suisse in a £2.6billion deal orchestrated by Swiss authorities to prevent the latter from failing and a trigger major crisis in the global banking industry.

Mr Hamers said he was resigning “in the interest of the new combined entity and its stakeholders, including Switzerland and its financial sector”.

He added: “The integration of Credit Suisse is UBS’s single most important task and I am confident that Sergio will successfully lead the bank through this next phase.

“Obviously I’m sorry to be leaving UBS, but circumstances have changed in ways none of us expected.”

Immediate challenges for Mr. Ermotti, who currently serves as chairman of the board of insurer Swiss Re, include laying off thousands of employees, cutting back on Credit Suisse’s investment bank and reassuring wealthy clients that UBS remains the best place to start their business to invest money.

UBS shares rose more than 2 percent in Zurich after news of Mr Ermotti’s appointment broke.

Mr. Hamers has been hired to succeed Mr. Ermotti to help with the digitization and modernization of UBS.

UBS Chairman Colm Kelleher said Mr Hamers had “positioned the bank to stabilize Credit Suisse and ensure a successful integration”.

He added: “While the acquisition supports UBS’s existing strategy, it sets us new priorities.

“Based on his unique experience, I am very confident that Sergio will deliver the successful integration that is so important for clients, employees and investors of both banks and for Switzerland. I know that Sergio will hit the ground running.”

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