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Sergio Ermotti looked at the future of UBS at the Swiss Economic Forum. The bank takes over Credit Suisse on Monday.
“We have a bumpy road ahead of us.” That said UBS boss Sergio Ermotti at the Swiss Economic Forum (SEF) in Interlaken with a view to the integration and restructuring of Credit Suisse. How things will continue with Credit Suisse Switzerland will be analyzed and examined in detail by the summer.
In an interview on the SEF stage, the UBS boss also commented on the parliamentary commission of inquiry (PUK), which parliament passed this week. She is to investigate the rescue of Credit Suisse. “I think the idea of a PUK is right,” said Ermotti. “However, I fear a tendency for hasty decisions and the discussion of the ‘too big to fail’ regulation.”
CS takeover as the ideal solution
Ermotti defended the ‘too big to fail’ laws. There would be no problem with that today. “It’s crystal clear.” From his point of view, it would have been possible on the weekend of March 19 to carry out the emergency plan or the nationalization of Credit Suisse. However, these options would not have been ideal.
During the interview, the UBS boss was also asked whether the management of Credit Suisse should be fully liable. Ermotti then said: “Yes, I would have no problem with that.”
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At the Swiss Economic Forum in Interlaken, UBS boss Sergio Ermotti spoke about the future of UBS. After the takeover of Credit Suisse, there should be fewer risks in the bank.
Swiss Economic Forum
Regarding the future of the new UBS, Ermotti said that the bank will be set up in line with the business model of today’s UBS. “We will hold less risk on our balance sheet, the business will be less capital intensive and we will improve the bank’s earnings potential,” he continued.
As has long been known, UBS is planning to reduce the risks in Credit Suisse’s investment banking and, according to Ermotti, the earning power in asset management is also to be increased. At the same time, UBS is growing in wealth management, particularly in Asia and Latin America. “This is crucial for future success in this business.”
Restructuring of staff necessary
“In the end, we will be a bank with a comprehensive range and can offer customers all services from a single source,” said Ermotti at the SEF. Corporate customers, large or small, would benefit from this in particular.
Ermotti did not want to comment on how big the cuts in personnel or job cuts will be. “But restructuring is needed and I am convinced that we will also be able to get the personnel situation under control through fluctuation, early retirement and a balanced social plan.”