Credit Suisse boss to join UBS board after rescue takeover closes

UBS said the boss of Credit Suisse will join its board after it closes its rescue takeover of the Swiss banking rival.

It is part of a major leadership reshuffle two months after the Government-led rescue takeover of Credit Suisse in a 3.25 billion US dollar (£2.64 billion) deal by UBS.

Ulrich Korner, who joined Credit Suisse as chief executive officer last summer, will now join the UBS group executive board.

Bosses at UBS said they anticipate the deal will legally close in the “next few weeks” to form a merged banking group.

The company said Mr Korner has knowledge of both organisations and will be responsible for ensuring “Credit Suisse’s operational continuity” and supporting the integration process between the two operations.

Sergio P. Ermotti, who recently returned to UBS as chief executive officer, said: “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry.

“Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service.

“This transaction will allow us to offer attractive returns to our shareholders and give us capacity to further invest and grow.

“The integration of the businesses and legal entities will take time.

“But adding Credit Suisse to UBS’s highly capital-accretive business model, diversified revenue streams, disciplined risk management and balance sheet for all seasons will benefit our clients, employees, investors, the economies we serve and the wider financial system.”

UBS also announced on Tuesday that Todd Tuckner will replace Sarah Youngwood as chief financial officer of UBS.