UBS Appoints Credit Suisse CEO Ulrich Koerner to Its Board of Directors

Industry watchers have viewed the largest bank’s acquisition of Credit Suisse using different lenses.

Swiss multinational investment banking company UBS Group AG (SWX:UBSG) has announced that Ulrich Korner, CEO of Credit Suisse, will join the executive board of the new combined entity. The update comes just weeks after regulators facilitated an emergency buyout of Credit Suisse by UBS.

UBS confirmed the announcement pursuant to a New releaseemphasizing that Korner will be responsible for maintaining Credit Suisse’s business continuity and customer focus while assisting with the integration process, using his expertise in both companies.

In addition, UBS stated that the legal completion of its acquisition of Credit Suisse is expected in the coming weeks. After the completion of the acquisition, the two banks will operate as a unified banking group.

This means that the two banks will almost certainly merge to some extent. Meanwhile, UBS issued a statement that the Credit Suisse brand will continue to operate separately for the “foreseeable future” as UBS consolidates the business in a “phased approach”.

Whatever conclusion the bank reaches, it will be interesting to see how the combined business plays out and how it affects the banking industry and financial markets in general. Notably, Korner will work with Sergio Ermotti as the new CEO to oversee the Credit Suisse acquisition, while UBS veteran Todd Tucker will become group CFO.

According to the information provided, the combined company will have five business divisions, seven functions and four regions as well as Credit Suisse, each represented by a board member who reports to Ermotti.

Is UBS the best deal for Credit Suisse?

Industry watchers have viewed the largest bank’s acquisition of Credit Suisse using different lenses. Significantly, a previous report revealed that the shares of the Swiss banking giants UBS and Credit Suisse fell after the latter’s acquisition. According to the details, Credit Suisse stock is down 60%, while UBS stock is down 10%.

Moreover, the European Banks Index was down about 2% around the same time. Also, lenders such as Deutsche Bank AG (ETR: DBK), Barclays PLC (LSE: BARC) and ING Group (AMS: INGA) were trading down more than 1.36% at the time of writing.

While commenting on the acquisition, UBS chairman Colm Keeler stated that the deal is part of a cut-price deal to stem a larger banking contagion, as “attractive” to UBS shareholders. However, the UBS chairman said such an appeal does not always put forward the same proposal to the acquired bank.

Meanwhile, UBS said in a statement that the collaborative endeavor should generate more than $5 trillion in total invested assets. Further, the banking giant stated that the consolidation of banking resources would lead to sustainable value opportunities that would ultimately be a win-win.

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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.

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