UBS holds first shareholder meeting since controversial Credit Suisse takeover
Newly appointed UBS CEO Sergio Ermotti (R) speaks with UBS Chairman Colm Kelleher throughout a press convention in Zurich on March 29, 2023.
Arnd Wiegmann | Afp | Getty Photographs
UBS will maintain its annual basic assembly on Wednesday morning in opposition to a fraught political backdrop, following its takeover of fallen rival Credit score Suisse final month.
Shareholders gathering in Basel will probably be searching for reassurance that the board has a transparent plan following the “shotgun wedding ceremony” between Switzerland’s two greatest banks, which stays mired in controversy, authorized peril and public skepticism.
New CEO Sergio Ermotti will take the reins on Wednesday after his shock reappointment final week, as UBS takes on the mammoth process of integrating its fallen compatriot’s enterprise.
Ermotti’s return was seen by many commentators as an try to revive calm, because the nation’s long-established popularity for monetary stability teeters on the road.
Considerations stay over the size of the brand new entity and whether or not it creates an excessive amount of concentrated danger for the Swiss and world economic system, whereas experiences have instructed that UBS’ plans could embrace job cuts of round 20-30% of the mixed entity’s world workforce.
Credit score Suisse held the ultimate impartial AGM in its 167-year historical past in Zurich on Tuesday, after Swiss authorities brokered an “emergency rescue” in late March, when the financial institution’s share worth tumbled and depositors fled en masse.
The board was angrily confronted on Tuesday by shareholders demanding solutions and accountability over the three billion Swiss franc ($3.3 billion) deal, which was rushed by over the course of a weekend and denied each UBS and Credit score Suisse shareholders a vote.
Credit score Suisse Chairman Axel Lehmann mentioned he was “really sorry” to shareholders, shoppers and workers, and instructed the financial institution’s turnaround plan after years of losses, scandals and compliance failures had been on observe till turmoil within the U.S. banking sector sparked a flight of confidence.
The Swiss Federal Prosecutor is investigating the state-backed takeover for potential breaches of Swiss federal legislation by authorities officers, regulators and prime executives.
Swiss regulator FINMA will maintain a press convention at 7:30 a.m. London time on Wednesday.