Feb. 26 (Bloomberg) -- UBS AG hired Oswald Gruebel to replace Marcel Rohner as chief executive officer, tapping the veteran banker who turned around Credit Suisse Group AG, to restore investor confidence eroded by record losses and a U.S. tax scandal.
The 65-year-old Gruebel takes over immediately from Rohner, who headed the unit accused of helping Americans evade taxes before becoming CEO 18 months ago, Switzerland’s biggest bank said today. UBS shares soared as much as 16 percent after the appointment of Gruebel, who returned Credit Suisse to profitability in 2003 and has been retired for two years.
Rohner, 44, is leaving after UBS admitted it made “mistakes” by helping clients evade U.S. taxes between 2000 and 2007. UBS has denied allegations in some Swiss newspapers that Rohner knew of structures aimed at defrauding the U.S. Rohner informed UBS in early January of his intention to step down, the company said.
“We are on the road to recovery,” Rohner said in a memo to employees. “I am convinced that with a fresh perspective, Oswald J. Gruebel will soon revive trust and restore confidence. This is what the bank needs now.”
A former bond trader, Gruebel doubled profit at Credit Suisse between 2004 and 2006 before retiring in 2007. He sold the Winterthur Insurance Co. unit, ending a failed expansion into insurance by his predecessor, and implemented a “One Bank” strategy similar to UBS’s, to lift earnings by making the three main divisions share clients and expenses.
The 65-year-old Gruebel takes over immediately from Rohner, who headed the unit accused of helping Americans evade taxes before becoming CEO 18 months ago, Switzerland’s biggest bank said today. UBS shares soared as much as 16 percent after the appointment of Gruebel, who returned Credit Suisse to profitability in 2003 and has been retired for two years.
Rohner, 44, is leaving after UBS admitted it made “mistakes” by helping clients evade U.S. taxes between 2000 and 2007. UBS has denied allegations in some Swiss newspapers that Rohner knew of structures aimed at defrauding the U.S. Rohner informed UBS in early January of his intention to step down, the company said.
“We are on the road to recovery,” Rohner said in a memo to employees. “I am convinced that with a fresh perspective, Oswald J. Gruebel will soon revive trust and restore confidence. This is what the bank needs now.”
A former bond trader, Gruebel doubled profit at Credit Suisse between 2004 and 2006 before retiring in 2007. He sold the Winterthur Insurance Co. unit, ending a failed expansion into insurance by his predecessor, and implemented a “One Bank” strategy similar to UBS’s, to lift earnings by making the three main divisions share clients and expenses.
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