The End of an Era: Credit Suisse Dissolution Leaves UBS and Former Employees in Turmoil
The end of an era is upon us in the banking world as Credit Suisse, a once-great institution, is gradually being dissolved. UBS Group AG and CS Group AG merged last June, but now it seems that the merger process will be finalized.
The Financial Times reported on Monday that the management team at Credit Suisse will soon be dissolved as part of this restructuring. Ulrich Körner, the current CEO of Credit Suisse, has already been announced as leaving UBS in the coming weeks. Other executives such as André Helfenstein are also expected to leave. UBS has not commented on these developments.
Körner’s departure is not a surprise, given that he was only appointed to his position at Credit Suisse in 2022 after the bank was already in turmoil. Despite his efforts to save the bank, it was ultimately unsuccessful and now faces dissolution. This news comes after a year-long climb for UBS shares, which recently slipped back to their pre-merger price of 25 francs. Investors are becoming impatient with the slow progress of integration and may soon demand more expensive equity capital from UBS.
On Tuesday, UBS will present its financial figures for the first quarter of 2024 and make further strategic announcements regarding CS integration. The pressure to demonstrate progress is great and this may lead to further changes within both banks in terms of staffing and operations. For former employees of Credit Suisse, especially those based in Switzerland, this is a time of uncertainty and change as fewer jobs are available for clean-up and integration work.
