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As Ermotti put together his post-crisis team, which includes few bankers from either SBC or Union Bank of Switzerland, Zeltner's past eventually became turned into a burden.

Fresh Start

Against the crisis backdrop, it is unsurprising that UBS' board, then run by former career politician Kaspar Villiger, opted for Ermotti, an Italian-Swiss investment banker who had spent much of his career in London. Who better to represent a fresh start following a series of scandals for everything from tax evasion to rigging markets? Ermotti and Zeltner settled into an uneasy marriage of convenience. Five years on, Zeltner was effectively a comeback kid simply for having survived for so long.

Another, less palatable reason for Zeltner's departure are questions which have long swirled around the banker's integrity and credibility – qualities which CEO Ermotti as well as chairman Weber have made clear they will not compromise on.

Zeltner's vulnerability began with criticism that he favored his brother, Urs Zeltner, a top executive of UBS' European private bank. To be sure, no evidence of favoritism emerged. Nevertheless, even the air of cronyism raised by the two brothers' professional proximity was intolerable in top management at a major Swiss bank. A spokesman for UBS referred to comments from Weber on Sunday, saying Zeltner had decided to leave. 

Judgement Questioned

Against this backdrop, Zeltner was hurt by stories which have accompanied his career for years now, questioning his character and ability to lead by example. He was always keenly aware of his power, which he often wielded broadly and self-confidently. Several separate sources told finews.com that women in particular were hesitant to work for Zeltner. While it is difficult to ascertain why among the several versions circulated, Ermotti and Weber seemed to have viewed it as evidence of leadership failings and bad judgement.

This aspect goes some way to explaining Zeltner's inglorious exit at a firm whose flagship unit he successfully rescued during the crisis. Given the private banker's rich global experience, Julius Baer will be hard-pressed not to add him to a shortlist of candidates to succeed its Chief Executive, Boris Collardi.

Improbable as it is, Zeltner to Julius Baer would allow the banker another chance to show his undisputed professional chops.