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At the end of the media conference, Ralph Hamers (57) looks almost relieved, even smiling – a loser looks different. A great weight has been lifted from the Dutchman’s shoulders, he is no longer the man to deal with the takeover of Credit Suisse by UBS. That task now falls on the shoulders of UBS President Colm Kelleher (65) and new CEO Sergio Ermotti (62). The retail banker and digitizer Hamers wouldn’t have made it.
Kelleher and Ermotti appear as statesmen in front of the media, speak with serious faces and are aware of their responsibility for the Swiss financial centre. “I will work hard to avoid as much damage as possible to the Swiss taxpayer,” explains Ermotti, and also gives politicians the following recipe: “You can’t throw the baby out with the bathwater.” What he means is that Bern shouldn’t put new shackles on giant UBS with stricter regulations just because of the CS shock.
duty calls
Ticino is overflowing with confidence and is obviously looking forward to his new assignment. He takes cues from the big names in the industry, American banks, and puts aside concerns about competition in the Swiss financial centre. “I promise to do everything in my power to successfully complete this transaction with Credit Suisse,” Ermotti said. To the benefit of UBS and therefore also of Switzerland. He also sees his role as a service to the country, talking about the “call of duty” that has left him behind.
It is clear that having a Swiss head of the last big bank is extremely important within the company. Even as Ermotti flirts with the fact that he was barely reassigned to the UBS chief position “as a Ticino who grew up in the Lugano financial centre”. But more importantly, Ermotti also has a good network outside Switzerland and can negotiate on an equal footing with supervisory authorities and wealthy clients. Because one of their first tasks will be to persuade very wealthy customers from Asia and other key markets to return their CS money back to UBS.
Have you ever flirted with CS?
After the merger was announced, UBS President Kelleher didn’t hesitate and called Ermotti on Monday a week ago. The phone call surprised even Ermotti, but he didn’t find it wrong. The Ticino native had been thinking loudly of the merger of UBS and CS years ago, and he followed this up in an interview with “NZZ am Sonntag” last fall. At that time, the two big banks’ statement that they were “not economically necessary” had a great impact.
In other words, the wish of “making a big transaction one day” has finally come true. Ermotti is aware of the risks of this Herculean mission and urges the public to “be patient”. After all, there is now talk of a few months before the first positive results – and no longer years, as with the defunct Credit Suisse.
Ermotti should not underestimate one thing: transforming UBS into the world’s largest asset manager was a much easier task than integrating CS into UBS. The economic environment today is completely different from then. But if anyone can do it then it’s Super Sergio from Ticino. A seasoned investment banker has tamed or driven out crazy traders and deal-makers before, giving UBS a whole new risk culture.
Don’t forget Hamers achievements
UBS President Kelleher also knows this: “We must absolutely prevent the transfer of the bad culture of CS to the new bank,” said the Irish media conference. It targets Anglo-Saxons instead of Credit Suisse’s Swiss employees. With Ermotti, Kelleher “supports the best horse” without diminishing the virtues of previous CEO Ralph Hamers.
This helps his slightly nervous successor straighten his collar before the media conference begins. And so, it shows that he’s already resigned to the role of consultant alongside the powerful CEO. Still, UBS and Ermotti should not forget the virtues of the Dutchman. The supertanker has digitized UBS, made it more agile, tweaked for sustainability, and made billions in the process. Properties that will continue to be good for the new UBS after the CS integration storm subsides.
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.
