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Credit Suisse bankers are risk-takers, while their counterparts at UBS are good-natured geeks. Or not? Shortly after the announcement of UBS’s acquisition of CS, UBS Chairman Colm Kelleher (66) publicly announced that all CS employees must pass a “cultural filter” before they can continue working at UBS.
Kelleher was apparently referring to CS’s problematic risk culture, which he wanted to distance from bankers. The statements caused concern among CS staff: many felt they were being treated like second-class employees and worried about their jobs.
CS employees have nothing to report
UBS CEO Sergio Ermotti, 63, now puts his chairman’s comments into perspective. “I don’t think there is a cultural gap per se between the two companies,” Ermotti said at a conference in Singapore organized by financial news agency Bloomberg. “We were in tough competition with each other, but we were operating with more or less the same business models.”
Despite the conciliatory tones, Ermotti also made clear who is in control of the bank merger: “If we talk too long about how we do business, it not only delays integration,” Ermotti said in Singapore. “This could also potentially lead to conflict.”
Integration consumes Ermotti’s time
It’s probably no coincidence that Ermotti is bringing up cultural differences again, more than half a year after Kelleher’s controversial statement: With the release of its quarterly figures these days, UBS also announced that it has raised $500 million so far. retention payments. These are generous gifts that will keep employees busy.
The bank is experiencing unprecedented bloodshed. “No one is getting fired right now because too many people are defecting,” a CS team member from Blick said recently. Anyone who can abandon the sinking ship – for example, towards private banks and cantonal banks or the insurance sector. This situation is becoming an increasingly greater risk for UBS. Everyone needs to be ready for CS integration to happen properly.
This also applies to the boss: according to UBS CEO Ermotti, two-thirds of his time was engaged in the integration of CS. Only one third is left for the management of the bank and daily business.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
