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☆ UBS names Sergio Ermotti as its new CEO, following acquisition of Credit Suisse
▼ + stars: | 2023-03-29 | by ( Joanna Tan | ) www.cnbc.com time to read: 1 min

Signage at the UBS flagship office in New York, US, on Tuesday, March 21, 2023. UBS named Sergio Ermotti as its new CEO on Wednesday, following the recent acquisition of Credit Suisse. The cuurrent CEO Ralph Hamers is set to remain at UBS and work alongside Sergio P. Ermotti to advise the bank during a transition period, the company said in a statement. "The Board wishes to express its deep gratitude to Ralph Hamers for his outstanding leadership, steering UBS to record results in two successive years, and for his instrumental role in bringing about the Credit Suisse acquisition," the Swiss bank said. Please check back for updates.

☆ UBS names Sergio Ermotti as new CEO and president
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: 1 min

March 29 (Reuters) - UBS Group AG (UBSG.S) named Sergio Ermotti as its next chief executive officer and president on Wednesday, the bank said in a statement. Ermotti, the current chairman of Swiss Re (SRENH.S), is returning to the bank where he was CEO from 2011 to 2020 after its takeover of Credit Suisse (CSGN.S). He will replace current UBS CEO Ralph Hamers from April 5, UBS said. Reporting by Akriti Sharma in Bengaluru; Editing by Clarence Fernandez and Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.

☆ Stocks making the biggest moves premarket: Lululemon, Paychex, Micron Technology and more
▼ + stars: | 2023-03-29 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

Lululemon – Lululemon shares surged more than 16% before the Wednesday open after posting a strong holiday quarter and sharing upbeat guidance for the current fiscal year. The athleisure wear company reported adjusted earnings of $4.40 a share on $2.77 billion in revenue and said same-store sales climbed by 27%. Carnival Corp — Shares of the cruise line climbed 2.5% in premarket trading after Susquehanna upgraded Carnival to positive from neutral. Micron fiscal second quarter results missed analyst expectations on both the top and bottom lines, according to Refinitiv consensus estimates. Paychex Inc. — Shares of the payroll services company were up nearly 3% premarket ahead of fiscal third-quarter earnings due after the close on Wednesday.

☆ Boomerang UBS boss ticks several important boxes
▼ + stars: | 2023-03-29 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

That’s the best explanation for why Chair Colm Kelleher on Wednesday said the Swiss bank was replacing CEO Ralph Hamers with erstwhile boss Sergio Ermotti. Though the move violates several corporate-governance red lines, it improves the group’s chances of successfully absorbing stricken rival Credit Suisse (CSGN.S). Nor was his hesitant delivery in a call with analysts after announcing the Credit Suisse deal. During his previous spell in charge, UBS held talks with Deutsche Bank (DBKGn.DE) and discussed a merger with Credit Suisse. Ermotti, a Swiss national, led the Swiss bank for nine years, departing in late 2020, and is currently chair of Swiss Re.

☆ 'Call of duty': With Sergio Ermotti, Switzerland gets a cost-cutting local to restore its reputation
▼ + stars: | 2023-03-29 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

UBS announced on Wednesday that the former CEO would replace Ralph Hamers from April 5, as the Swiss bank undertakes the mammoth task of integrating fallen rival Credit Suisse into its business. Incoming UBS CEO Sergio Ermotti on Wednesday said his return to the helm was "a call of duty," as the Swiss veteran takes on the task of restoring order to the country's battered financial reputation . Kelleher emphasized that Ermotti's task — the successful integration of Credit Suisse into UBS — was "essential for both banks' clients, people and investors, for Switzerland and for the global financial system in general." Asked by CNBC during Wednesday's press conference about his motivation for returning to UBS, Ermotti said there was "a call of duty aspect" to his decision. "I'm fully aware that we need to work very hard here to avoid any consequence for the taxpayers in Switzerland.

☆ Fintech has a fraud problem, and the onus is on you to figure it out
▼ + stars: | 2023-03-29 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Fintech's fraud misfortune. Which brings us to a story by Insider's Bianca Chan and Paige Hagy about concerns over the prevalence of fraud within consumer-facing fintechs in recent years. Click here to read more about fintech's fraud problem. We've also got the deck StellarFi, a fintech that helps users improve their credit score, used to raise $15 million. For more than 50 different decks used by fintechs to raise fresh funds, check out our library.

☆ European stocks extend recovery as banking fears ebb
▼ + stars: | 2023-03-28 | by ( Sruthi Shankar | ) www.reuters.com time to read: +2 min

The continent-wide STOXX 600 index (.STOXX) climbed 0.4%, extending its rebound after last week's market rout caused by the collapse of Credit Suisse and two mid-sized U.S. lenders. European banks (.SX7P) rose 1.2%, adding to Monday's 1.4% gain. Credit Suisse shares rose 1.7%. The European banks index was on track for its worst monthly showing since March 2020, when financial markets were roiled by pandemic fears. Embracer (EMBRACb.ST) tumbled 13.8% to the bottom of the STOXX 600 after the Swedish gaming group pushed back dates for expected completion of several deals announced last year.

☆ Morning Bid: Swinging between bank fears and rate risks
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike DolanMarkets seem caught between the devil and the deep blue sea. Easing concerns about bank stability this week have merely re-introduced interest rate risk, reining in any suggestion of a runaway relief rally as the first quarter closes on Friday. While nerves persist over March bank failures and contagion fears, central banks are still faced with punchy growth and inflation and will likely switch attention back to cooling that down once they're assured banks can take the strain. But interest rate markets are already correcting as signs of stability in the banking arena emerge. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ "We did not buy Credit Suisse only to close it" - UBS CEO
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: 1 min

ZURICH, March 27 (Reuters) - UBS's (UBSG.S) CEO Ralph Hamers on Monday said the Swiss bank sees its government-orchestrated takeover of Credit Suisse (CSGN.S) as a growth opportunity, in an internal memo seen by Reuters. "While we did not seek this transaction, we were prepared, and we see it as an opportunity to accelerate our firm’s growth story," Hamers wrote. "We did not buy Credit Suisse only to close it." Reporting by Noele Illien; Editing by Jan HarveyOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse rescue creates bank twice the size of Switzerland's economy
▼ + stars: | 2023-03-23 | by ( Hanna Ziady | ) edition.cnn.com time to read: +9 min

London CNN —The last-minute rescue of Credit Suisse may have prevented the current banking crisis from exploding, but it’s a raw deal for Switzerland. An aerial view of the headquarters of Credit Suisse, center, and UBS, left, at Paradeplatz in Zurich, Switzerland on Sunday, 19 March, 2023. Credit Suisse is “part of Switzerland’s identity,” said Hans Gersbach, a professor of macroeconomics at ETH university in Zurich. “The Credit Suisse Swiss bank is a fine asset that we are very determined to keep,” Kelleher said Sunday. Integration is difficultAt $3.25 billion, UBS got Credit Suisse for 60% less than the bank was worth when markets closed two days prior.

☆ UBS to take over Credit Suisse, assume up to 5 billion Swiss francs in losses
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +4 min

BERN, March 19 (Reuters) - UBS (UBSG.S) agreed to buy rival Swiss bank Credit Suisse (CSGN.S) for 3 billion Swiss francs ($3.23 billion) in stock and agreed to assume up to 5 billion francs ($5.4 billion) in losses, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. The deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank. In that eventuality, UBS would assume the first 5 billion francs, the federal government the next 9 billion francs, and UBS would assume any further losses, the government said. Credit Suisse Additional Tier 1 shares with a nominal value of around 16 billion francs ($17.2 billion) will be written down completely after the Swiss government provided support for UBS' takeover of Credit Suisse, FINMA said. Reuters Graphics Reuters GraphicsThe Swiss government said that it was also giving UBS a guarantee of 9 billion Swiss francs "assume potential losses" from assets as part of the transaction.

European bank shares slumped, with an index of leading lenders (.SX7P) down 5.8%. Credit Suisse shares slumped 62%, reflecting the huge loss its shareholders will see in their investment in the bank. Monetary authorities in Singapore and Hong Kong, where Credit Suisse hosts large regional offices, separately said the Swiss bank's business continued without interruption. And Credit Suisse urged its staff to go to work, according to a memo to staff seen by Reuters. Credit Suisse staff arriving to work in Hong Kong and Singapore on Monday morning, however, fretted about retrenchments and retaining business.

It will change the landscape of banking in Switzerland, where branches of Credit Suisse and UBS are dotted everywhere, sometimes just metres apart. The Credit Suisse rescue, orchestrated with public money, shows banks' continued vulnerability and how their problems can quickly rebound on their home country. But it also removes a competitor to Wall Street, with UBS planning to pare back much of Credit Suisse’s investment bank. During the great financial crash, it was UBS and not Credit Suisse that needed state support. UBS earned $7.6 billion in profit in 2022, while Credit Suisse lost $7.9 billion.

Reuters Graphics Reuters GraphicsThe Swiss Bank Employees Association, in a statement to Reuters, demanded that UBS keep job cuts to an "absolute minimum". The statement underscores the sense of unease in Switzerland, with its reputation as a global financial center on the line. Green Party lawmaker Gerhard Andrey said that Credit Suisse is "such a visible institute". "A few months ago, nobody would have thought that Credit Suisse would fail. "But also that we are upholding the reputation of the Swiss financial centre."

☆ UBS CEO says bank can handle risks of Credit Suisse takeover
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +1 min

ZURICH, March 20 (Reuters) - UBS (UBSG.S) can handle the risks from taking over Swiss rival bank Credit Suisse (CSGN.S), UBS Chief Executive Ralph Hamers told broadcaster SRF. In a package orchestrated by Swiss regulators on Sunday, UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses. "The second step for us is to transform CS's investment bank into an investment bank like UBS has. He said he did not currently have any figures regarding lay-offs at Credit Suisse, although there would always be cost savings. The intended takeover would bring security and stability to the Swiss financial market and also for Credit Suisse clients, he added.

The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" in restoring calm. There are also concerns about what happens next at Credit Suisse and what that means for investors and employees. The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. Credit Suisse shares had lost a quarter of their value last week. The bank was forced to tap $54 billion in central bank funding as it tries to recover from scandals that have undermined confidence.

One recruiter told Insider they'd seen an influx of resumès of a similar scale to the 2008 financial crisis. Executives looked 'very downbeat' at an all-company meetingHeadquartered in Zurich, Credit Suisse has a large presence in Europe. A European-based headhunter told Insider they'd "heard there were some tears" from Credit Suisse veterans about the prospect of the bank's takeover. As Credit Suisse's outflows accelerated over recent months, it appears its employees have hunted for other postings. One industry headhunter in the UK said their desk has piled up with job applications from Credit Suisse workers for around a month.

☆ UBS' dramatic takeover of Credit Suisse was the deal neither bank wanted. Here's some of the passive-aggressive digs from both sides.
▼ + stars: | 2023-03-20 | by ( Matt Turner | ) www.businessinsider.com time to read: +5 min

UBS acquired Credit Suisse in a rescue takeover over the weekend. But Credit Suisse didn't want to be rescued, and UBS didn't want to have to be the rescuer. For example, the first official word of the deal came from the Swiss National Bank, which announced: "UBS today announced the takeover of Credit Suisse." Next, Credit Suisse announced: "Credit Suisse and UBS to Merge." In 2019, after UBS announced Khan's hire, the chief operating officer at Credit Suisse ordered a colleague to spy on him.

[1/2] CEO Ralph Hamers of Swiss bank UBS addresses the Annual Meeting of Swiss Financial Institute (SFI) in Zurich, Switzerland November 10, 2022. Hamers, with no big-ticket M&A experience under his belt, has cut his teeth reshaping a major Dutch lender mostly by selling businesses. Reuters Graphics Reuters GraphicsA nearly 30-year veteran of Dutch lender ING - he married a former colleague from the bank - Hamers was a surprise choice when he was appointed in early 2020 to lead UBS. UBS declined to comment on the matter on Monday but the bank said at the time that it had "full confidence" in Hamers. Former Unilever CEO and fellow Dutchman Paul Polman gave a Hamers a vote of confidence on Monday, telling Reuters that "Hamers is a purposeful leader certainly well prepared to lead Swiss banking through these challenging times."

☆ Credit Suisse's investment bankers are so concerned about cuts, employees are being told to look for new jobs. 'They encouraged it.'
▼ + stars: | 2023-03-20 | by ( Carter Johnson | Casey Sullivan | Dakin Campbell | ) www.businessinsider.com time to read: +12 min

The fate of Credit Suisse's investment bank hangs in the balance after being sold to UBS. The investment bank's planned spinoff has been put on hold and bankers are bracing for job cuts. People said they expect Credit Suisse's planned spinoff of its investment banking operations, announced last year, to be scuttled. Over at 11 Madison Ave., where Credit Suisse's NY operations are headquartered, emotions were running hot on Monday. Now, the proposed CS First Boston deal hangs in the balance, with both industry experts and Credit Suisse employees uncertain whether it will go through.

The ECB vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" for restoring calm. [1/6] Chairman of the Board of Directors of UBS, Colm Kelleher and Chairman of the Board of Directors of Credit Suisse, Axel Lehmann attend a news conference on Credit Suisse after UBS takeover offer, in Bern, Switzerland, March 19, 2023. The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to 0.76 Swiss francs per share for a total consideration of 3 billion francs, UBS said. Under the deal with UBS, some Credit Suisse bondholders are major losers.

FINMA, the Swiss regulator, said the decision would bolster the bank's capital. Engineered in the wake of the global financial crisis, AT1 bonds are a form of junior debt that counts towards banks' regulatory capital. "It's stunning and hard to understand how they can reverse the hierarchy between AT1 holders and shareholders," said Jerome Legras, head of research at Axiom Alternative Investments, an investor in Credit Suisse's AT1 debt. Credit Suisse's AT1 debt had rallied earlier on Sunday amid reports that shareholders would receive something in a deal with UBS, raising hopes that bondholders would be protected. The move by the Swiss regulator could make it harder for other lenders to raise new AT1 debt, investors said.

☆ Meet UBS CEO Ralph Hamers, a leader behind Credit Suisse negotiations who opts for open-necked shirts and wants to build 'Netflix of wealth'
▼ + stars: | 2023-03-19 | by ( Bethany Biron | ) www.businessinsider.com time to read: +2 min

UBS CEO Ralph Hamers is a key figure in negotiations to buy Credit Suisse and prevent its collapse. The 56-year-old exec has worked in Swiss banking for more than three decades and is a proponent of digital innovation. Sign up for our newsletter to get the latest stories in hedge funds, PE, fintech, and banking — delivered daily to your inbox. ING ultimately was slapped with a nearly $900 million fine for not adequately preventing financial crime, according to BBC News. At the time, he said the bank took "full responsibility" and its failure to follow policy was "unacceptable," BBC News reported.

☆ UBS to take over Credit Suisse, assume up to 5 bln Swiss francs in losses
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +4 min

The deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank. In that eventuality, UBS would assume the first 5 billion francs, the federal government the next 9 billion francs, and UBS would assume any further losses, the government said. Credit Suisse Additional Tier 1 shares with a nominal value of around 16 billion francs ($17.2 billion) will be written down completely after the Swiss government provided support for UBS' takeover of Credit Suisse, FINMA said. Authorities had been scrambling to rescue Credit Suisse, among the world's largest wealth managers, before financial markets reopened on Monday. Reuters Graphics Reuters GraphicsThe Swiss government said that it was also giving UBS a guarantee of 9 billion Swiss francs "assume potential losses" from assets as part of the transaction.

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