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UBS rehires old boss to do Credit Suisse takeover

STORY: UBS is rehiring its old boss to deal with the sudden takeover of local rival Credit Suisse.

The lender said Wednesday (March 29) that Sergio Ermotti would return.

He faces the tough challenge of laying off thousands of staff.

He must also cut back Credit Suisse's investment bank, and reassure markets UBS is a safe place for their cash.

Ermotti led the bank for close to a decade, from 2011 to 2020, and is due to return from April 5.

UBS wants to take advantage of his experience of rebuilding the bank after the global financial crisis.

It recently bought Credit Suisse in a merger pushed through by Swiss authorities.

Credit Suisse ran into severe difficulties following years of scandals, and the deal made UBS Switzerland's only global bank.

It is now underpinned by $170 billion in state loans and guarantees.

Some see it as a risky move, given it now means the Swiss economy is more dependent on a single lender.

UBS shares rose over 2% following the news about Ermotti.

The bank said current CEO Ralph Hamers would step down in the interests of the country, but stay on as an adviser.