UBS signalled the end of a not-so-glorious era on Thursday, announcing it has appointed Oswald Gruebel, a former head of rival Credit Suisse, as its new chief executive, replacing Marcel Rohner.
Reuters reports that UBS, which has made more writedowns than any other European bank during the credit crisis, said Rohner had informed the board in January of his intention to retire after the repositioning of UBS’ investment bank had been concluded.
UBS Chairman Peter Kurer said in a statement that Gruebel, who was at Credit Suisse for nearly 40 years, “brings the ideal skill set to recreate value, together with our management team, for our shareholders and clients.”
“Surprising, yes, but he comes with an impressive track record,” Andreas Weese, an analyst at UniCredit in Munich who has a “hold” rating on UBS told Bloomberg. “This should calm some investors nerves.”
UBS agreed last week to pay a $780m fine and hand over some client names to settle US criminal charges in a tax fraud investigation, prompting a slide in shares and concerns it will weaken the strict privacy rules that underpin Switzerland’s wealth management industry. Shares in UBS have hit record lows below SFr10 this week after a barrage of criticism of the Swiss bank’s handling of the US tax probe and concerns about the survival of banking secrecy, notes Reuters.
At Credit Suisse, Grubel held various management positions at group level and in investment banking and private banking units. He was co-CEO and CEO from 2003 until 2007.
Related links:
UBS to pay $780m fines and reveal names over tax evasions - FT
UBS appoints ex-Credit Suisse Gruebel as chief - Reuters