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Business News/ Industry / Banking/  UBS-Credit Suisse merger: UBS Group AG to make major investment bank restructuring, report
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UBS-Credit Suisse merger: UBS Group AG to make major investment bank restructuring, report

UBS Group AG is set to make significant changes to its investment banking division following the takeover of Credit Suisse.

FILE PHOTO: Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 20, 2023. REUTERS/Denis Balibouse//File Photo (REUTERS)Premium
FILE PHOTO: Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 20, 2023. REUTERS/Denis Balibouse//File Photo (REUTERS)

In a bid to produce a unified team post Credit Suisse takeover, UBS Group AG is poised to make significant changes to the senior ranks of its investment banking division globally as soon as Monday, reported Reuters. 

The process will mark a new milestone in the Credit Suisse-UBS integration, reported the news agency citing people familiar with the matter. The changes are aimed at producing unified teams following the completion of UBS's emergency takeover in June of Credit Suisse.

Also read: Credit Suisse-Archegos mess: UBS slapped with $400 million fine

The recent set of decisions and amendments involve several deal-making groups, including healthcare, consumer/retail, financial sponsors and equity capital markets, the sources said.

Some Credit-Suisse bankers on bigger role, while some others will leave

In the recent round of restructuring, some Credit Suisse bankers will take on bigger roles in the combined company, whereas, some others will be asked to leave the firm, reported Reuters' Abigail Summerville, Milana Vinn and David Carnevali in their report. Not just Credit Suisse, some UBS bankers will also leave the firm as a result of the reshuffling.

Also read: UBS Credit Suisse merger: UBS to fire hundreds of Credit Suisse bankers — report

The Credit Suisse-UBS merger will result in tens of thousands of jobs hanging in the balance, whereas, many will be promoted to senior positions. The restructuring is the latest move by CEO Sergio Ermotti.

Name of top officials leaving after Credit Suisse-UBS integration

The global news agency reported that Jeff Rose, UBS' global head of consumer products and retail deals is expected to leave the firm after restructuring.  He will be repolaced by Jon Levin, who has served as Credit Suisse's head of retail investment banking, reported Reuters citing sources.

Also Read: UBS Group AG offers to buy Credit Suisse for up to $1 billion: Report

Other team leader in the name is Matt Eilers, who is the UBS' global head of financial sponsors. The global head of healthcare of UBS, Rob DiGia is expected to take on a chairman-level role after integration.

It is worth noting that there has been no finalisation of the top officials who will leave the firm and who will stay with the firm. Hence there can be some changes in the decision about the mentioned senior employees in future. 

Also read: UBS takes over Credit Suisse: 10 things to know about this historic deal

In another set of reshuffling, the bank is planning to name Laurence Braham, as global co-head of technology in UBS' technology, media and telecommunications (TMT) group.

His co head would be Christian Lesueur, who has been global head of TMT investment banking, the sources added. The Steve Pettigrew, who just joined UBS from Bank of America Corp , would be leading software M&A under Braham, according to the sources. Neil Meyer, who worked alongside Braham at Barclays and followed him to UBS, would co-lead media and communications dealmaking globally alongside Lesueur, the sources said.

As per the experts, with its restructuring plan, UBS might be looking at cutting about a third of the combined group's global workforce, or some 30,000-35,000 jobs.

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Updated: 05 Aug 2023, 11:18 AM IST
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