Ermotti takes the helm at UBS as Grübel quits
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Monday 26 September 2011
Sergio Ermotti, the new boss of UBS, has defended the Swiss bank as one of the "best capitalised" in the world as he attempts to shore up confidence after the $2.3bn (£1.5bn) rogue trading scandal.
The 51-year-old head of UBS's Europe, Middle East and African division was named the interim chief executive of UBS this weekend after the scandal led to the resignation of Oswald Grübel, the banking veteran brought out of retirement to turn the bank around after it was hit by sharp losses during the credit crunch.
After his appointment was announced, Mr Ermotti said: "We are aware that we are facing turbulent times externally and this latest incident is only adding much more necessity for us to react. But let's not forget that UBS is one of the best capitalised banks worldwide."
At the top his agenda is an internal investigation into the scandal, which should be concluded in 10 to 14 days, although external investigations might stop the bank from disclosing its findings. Britain's Financial Services Authority and the Swiss Financial Market Supervisory Authority said they were launching an investigation into the scandal shortly after news of the trading loss broke in mid-September. The bank's board has also asked the new chief to speed up efforts to scale back its investment banking arm as it seeks to protect its core wealth management business.
Mr Ermotti, who joined UBS in April, said the moves would be outlined at a planned investor day in New York in November.
In a memo to staff after his appointment this weekend, Mr Ermotti, writing jointly with the Swiss bank's chairman, Kaspar Villiger, said: "There will be enormous challenges in the coming weeks and months and we are confident that we can realign UBS to deal with the new market environment facing the financial services industry."
Mr Grübel, who was appointed in 2009, said he did not "take the step of resigning lightly". In a message to staff, he added: "I am convinced that it is in the best interests of UBS to approach the future with a new leader at the top."
- 1 Reyhaneh Jabbari: Iran due to execute woman for murder of her alleged attempted rapist
- 2 Sainsbury's '50p challenge' poster telling staff to encourage customers to spend more placed in shop window instead of staff room
- 3 Expert urges cat lovers to own just one animal each
- 4 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 5 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
Expert urges cat lovers to own just one animal each
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...