Ulrich Körner – group executive board member, UBSUBS has announced that Credit Suisse CEO Ulrich Körner will join its executive board and stay on to help manage the integration of the two banks. Its $3.2bn acquisition of crisis-stricken Credit Suisse is expected to conclude within the next few weeks. Mr Körner first joined Credit Suisse in 1999 as chief financial officer for Switzerland and progressed to CEO of the bank’s Swiss operation in 2008. He returned to Credit Suisse as group CEO in July last year. He was appointed in a bid to improve the troubled lender’s fortunes after a string of scandals and risk management failures, including the collapse of US hedge fund Archegos and British supply chain finance firm Greensill, dented the bank’s income and shook investor confidence. Prior to his return, he spent a decade at UBS, culminating in a stint as adviser to the CEO from 2019 to 2020. Commenting on Mr Körner’s appointment, UBS said: “With his knowledge of both organisations, he will be responsible for ensuring Credit Suisse’s operational continuity and client focus, while supporting the integration process.” UBS has confirmed that the combined company will initially operate as two separate entities, with each continuing to serve its own clients and dealing counterparties. Credit Suisse will continue to rely on its established governance and risk control frameworks, with some new policies added to increase UBS’s oversight. UBS’s board of directors and executive board will hold overall responsibility for the consolidated group. The combined company will comprise five business divisions, seven functions and four regions in addition to Credit Suisse, with each represented by an executive board member reporting to UBS CEO Sergio Ermotti. UBS wealth management chief Todd Tuckner will become chief financial officer for the group, replacing Sarah Youngwood, who has decided to step down. In addition, Beatriz Martin Jimenez, UBS’s UK head and group treasurer, will assume the role of head of non-core and legacy. She will be responsible for winding down Credit Suisse’s operations that are unlikely to have a place in the long-term vision of the combined company. With attention now shifting to UBS's strategic plan for the combined company, UBS reiterated that it will “evaluate all options for Credit Suisse’s Swiss business” and "will communicate further on this matter in the coming months”.
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