Stricken Swiss bank UBS has appointed Oswald Gruebel, who masterminded a turnaround at arch rival Credit Suisse, as its new chief executive, replacing Marcel Rohner.
UBS has made more writedowns than any other European bank during the credit crisis and is embroiled in a tax row with US authorities, pushing its shares to all-time lows and putting a senior management team last reshuffled less than a year ago under severe pressure.
"With his previous employer Credit Suisse, Mr Gruebel was the architect of a successful turnaround and restored confidence in the company in turbulent times," UBS said in a statement.
A four-decade veteran of the banking industry, Mr Gruebel performed a rescue act at Credit Suisse, where as co-CEO and then CEO he reversed multi-billion-dollar losses and led a sweeping restructuring that restored profitability and confidence in the group.
UBS shares had risen some 11 per cent to 11.17 Swiss francs by 8.25am, versus a 3.7 per cent rise in the European banking sector, as investors welcomed news Mr Rohner was leaving the bank, signalling a potential departure from its previous strategy.
"UBS shares are likely to rise today, but this will be more because Mr Rohner is going rather than because it's Mr Gruebel who is replacing him. The news that Gruebel is moving to UBS is bad for Credit Suisse as he is likely to take some good people with him," one Zurich-based trader said.
"If Kurer would go to, then the (UBS) shares would rise further." In an internal memo to UBS staff, Mr Gruebel said his appointment may have come as a surprise to many.
"It is a clear signal of the board's willingness to take action and move ahead," Mr Gruebel wrote in the note, a copy of which was obtained by Reuters. "
Reuters