UBS hires new CEO

Amidst the turmoil of the credit crisis, one bank has hit the headlines more often than not. The United Bank of Switzerland (UBS) is at the center of the financial crisis with over $15B in mortgage backed securities writedowns, a $780M charge and disclosure of some names of Americans that they helped evade taxes, plus much much more. 

 

As the largest wealth management provider in the world, UBS seeks to regain the credibility that was once bestowed upon them. Today, UBS AG announced the hiring of former Credit Suisse executive (Oswald Gruebel) to return the bank to profitability as well as save face.

 

According to Sanford Bernstein & Co Analyst, Dirk Hoffmann-Becking, "Oswald, or Saint Ossi as the Swiss call him, is credited with the turnaround of Credit Suisse after the Winterthur debacle". Gruebel's successes include doubling Credit Suisse's profit between 2004 and 2006, selling off the Winterthur Insurance Co., unit and implementing a "One Bank" strategy similar to that of UBS (bloomberg.com).

Given the current market situation and the troubles that UBS is currently dealing with a change in leadership could prove to be the right move for the future profitability of the bank.