Almost no one knows UBS as well as top executive Markus Ronner. Even more important than the Swiss banker's detailed knowledge of the bank's dealings are his connections.
Fifty-three year-old Markus Ronner has never worked for anyone else than UBS, where he began as an apprentice in 1981. The Swiss bank on Thursday rewarded the consummate insider with a promotion to head of compliance, regulatory affairs, and governance as well as a spot in CEO Sergio Ermotti's 12-person top management.
Ronner made a name for himself with UBS' new legal entity structure, a result of the bank's near-death in 2008. UBS has spent roughly $1.5 billion on the move since 2013, according to sources at the bank.
Weatherproofing UBS
The money went towards building a holding structure, splitting off UBS Switzerland to meet too-big-to-fail rules, and transferring internal services into its own unit. Ronner began the «too big to fail» job virtually alone, but the project ultimately consumed thousands of employees.
The goal was to gird UBS against future crises and to be able to demonstrate to Swiss regulators that the bank has a viable emergency plan. Swiss officials have vowed that UBS never again be rescued by the government, as it was just over ten years ago.
From Finma to Fed
The project, which drew little attention outside of UBS, allowed Ronner to make a name for himself in regulatory circles, where he enjoys the trust of officials from Switzerland's Finma to the U.S. Federal Reserve.
His network will be instrumental in helping UBS navigate the tangle of regulation. Ronner's job also included explaining UBS' new structure to ratings agencies. His experience – the grounded Swiss native was also head of internal audit – also won him overnight over internal investigations.
UBS has conducted a series of probes, most recently into the alleged rape of a UBS banker by her boss. More common are cases of money-laundering or financial misconduct.
Hoping for More?
His promotion and elevation into top management is an acknowledgement that the bank needs to tighten its own oversight. It also increases the number of potential internal candidates to succeed Ermotti, who seemed to lay out his last three years with the bank earlier on Thursday.
To be sure, Ronner is a behind-the-scenes banker, but he did absolve a stint as head of products and services at UBS.
