Credit Suisse’s merger with UBS AG is nearing its completion, and according to media reports, the management team will soon be dissolved. CS boss Ulrich Körner is expected to leave UBS in the coming weeks, while other executives such as André Helfenstein will be asked about their future roles at the bank. The Financial Times reported on Monday that CS will be dissolved as part of this restructuring.
Körner’s departure from Credit Suisse was not a surprise, given that he had been trying to save the independent bank since spring 2023. However, he was only able to make a last-ditch effort when the house at CS was already on fire. Meanwhile, UBS has been gradually dissolving Credit Suisse AG since it became a subsidiary of UBS Holding in June 2023.
The merger between UBS AG and Credit Suisse AG was approved by the UBS Board of Directors at the end of 2023, marking an important milestone in the banking marriage. As a result, Credit Suisse AG no longer needs its management team, which had been running the bank as a representative body since it was taken over by UBS. This move could be particularly unpleasant for UBS, as it comes after a year-long climb and recent slippage of its shares back to 25 francs.
UBS will present its figures for the first quarter of 2024 on Tuesday and make further strategic announcements. The pressure to demonstrate progress in integrating Credit Suisse into UBS is great, especially for former employees of Credit Suisse who are slowly being phased out of their roles at the new bank. Some employees with many years of experience may have to leave before they can find new jobs outside of banking altogether.
In conclusion, the integration process between two major Swiss banks is far from over yet. While Körner’s departure marks an end to one chapter in this process, it also paves the way for further changes and challenges ahead for both banks and their employees.
