UBS Sets Priorities for Credit Suisse Integration: After announcing a new leadership structure this week, UBS has made the integration of Credit Suisse's investment bank and cost-cutting a priority. It also plans to decide on the fate… UBS CreditSuisse
Following the completion of UBS' acquisition of Credit Suisse in the next few weeks, the newly formed management team will lead the banks' integration project. UBS has now prioritized the integration of Credit Suisse's investment bank and accelerated cost reductions.
Management will initially focus on combining the two investment banks, according to a «Financial Times» , citing people familiar with the matter. The aim is to «create clarity on day one», and avoid having two people going out and calling prospective clients to sell them the same products, the source told the «FT».In a memo obtained by the FT, UBS CEO Sergio Ermotti urged employees not to view Credit Suisse as a competitor.
One such bank admitted today to doing just that. Swiss private bank EFG International said openly it is benefitting from Credit Suisse's difficulties. In recent months, EFG has poached dozens of Credit Suisse workers and will continue doing so, board chairman Alexander Classen said in a «Le Temps» interview .
Under the reshuffled leadership structure at UBS, Rob Karfofsky will continue to lead the investment bank, but the efforts to wind down unwanted parts of the unit fall under the new EMEA head Beatriz Martin Jimenez.Originally, UBS wanted to keep Credit Suisse's profitable Swiss bank but is considering other options, including a possible spinoff or IPO, to preserve thousands of jobs and protect shareholder value, according to the «FT» source.
UBS also wants to reduce costs more quickly after the takeover. Credit Suisse management already planned to slash $2.8 billion in costs over three years. UBS believes cuts need to go deeper and faster to reflect the lower revenues at Credit Suisse.
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