The legal integration of UBS and Credit Suisse will close in the next few weeks, with the two banks operating separately for now. The team to manage the new venture has also been announced, and Ulrich Koerner resurfaces.

Following UBS's government-imposed takeover of Credit Suisse on March 19, speculation abounded over who would lead the new entity and what it would look like. In a statement from UBS Tuesday, it said the Group will manage the two parent companies of UBS AG and Credit Suisse AG as a consolidated banking group, each with its subsidiaries and branches, serving its clients and dealing with counterparties. 

Both will continue to operate independently for the foreseeable future, with UBS carrying out the integration in a phased approach. Overall responsibility falls to the UBS Group board of directors and its executive board.

Pivotal Moment

Until the two further integrate, Credit Suisse will rely on its established governance and risk control frameworks, with some new policies added so that UBS can effectively oversee it.

«This is a pivotal moment for UBS, Credit Suisse, and the entire banking industry. Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risks, and anchored by stability and high-touch service. This transaction will allow us to offer attractive returns to our shareholders and give us the capacity to further invest and grow,» said UBS CEO Sergio Ermotti.

Five Divisions

The overall structure comprises five business divisions, encompassing seven functions spread among four regions, each represented by an executive board member of the group, all reporting to Ermotti. In addition, Credit Suisse CEO Ulrich Koerner becomes a member of the UBS Group's executive board. The divisions and their leadership are as follows:

Remaining in their roles are: Iqbal Khan as head of Global Wealth Management, with Rob Karofsky continuing as president of the Investment Bank. Sabine Keller-Busse stays on as president of Personal & Corporate Banking and president of Switzerland, while Suni Harford remains Asset Management president and the Sustainability & Impact lead.

The Crown Jewel

Beatriz Martin Jimenez becomes Head Non-Core and Legacy and President EMEA and remains UBS's chief executive for the UK. Until a successor is named, she continues in her group treasurer role. 

UBS will continue to evaluate all options for the Swiss business of Credit Suisse run by André Helfenstein and considered the crown jewel of  Credit Suisse. It will «communicate further on this matter in the coming months,» according to the statement.

Sarah Youngwood Departs 

Within the functional structure, UBS announced that Sarah Youngwood will be departing. As finews.com previously reported, there was some internal controversy about her selection which was said to be backed by former CEO Ralph Hamers who was exited in favor of Ermotti. 

  • Todd Tuckner is appointed Group Chief Financial Officer and becomes a member of the Group Executive Board with immediate effect and takes on the role of CFO at the close of the acquisition, succeeding Youngwood, who will leave the firm after the transaction closes.
  • Michelle Bereaux will be Group Integration Officer. She has spent nearly 23 years at UBS and has held various leadership roles across the firm. 
  • Mike Dargan will be Group's Chief Operations and Technology Officer
  • Stefan Seiler will be the Group Head of Human Resources and Corporate Services. 
  • Christian Bluhm remains Group Chief Risk Officer
  • Barbara Levi remains Group General Counsel
  • Markus Ronner remains Group Chief Compliance and Governance Officer

Tuckner, Martin Jimenez, Bereaux and Seiler also become members of the executive board at the close of the transaction. 

Marting Jimenez, becomes president of EMEA, while Naureen Hassan continues as president of the Americas and Sabine Keller-Busse remains the head of Switzerland. For the Asia-Pacific region, Edmund Koh remains in his post as well. 

Where are the Credit Suisse Executives?

For now, Koerner is the only top Credit Suisse executive to make the cut in moving to UBS. He was brought over because of his knowledge of both organizations to ensure operational continuity and client focus while supporting the integration, according to the statement. 

Other high-profile executives at Credit Suisse like wealth management head Francesco De Ferrari, Asia head Edwin Low, and CFO Dixit Joshi are not mentioned in the statement. Nor were chief legal officer Markus Diethelm and COO Francesca McDonagh

Unusual Move

Like Koerner, Diethelm also worked at both Credit Suisse and UBS, and a case could be made that he could also have been brought back into the UBS fold. That, however, might be considered an unusual move since he retired from UBS before moving to Credit Suisse.

As part of the decision to keep UBS and Credit Suisse operationally separate for the time being, it could be that UBS decided that discretion on their futures was the best course for now and they remain with the, for now, independent Credit Suisse. In any case, any announcement about Helfenstein could be seen as premature since all options for the Credit Suisse Swiss business that he runs are still being considered.

Ten Billion Franc Windfall

By keeping Helfenstein in place at Credit Suisse, he would be in a perfect position should UBS decide to spin off the Swiss business via an IPO which some observers say would result in a ten billion franc windfall for UBS.