Troubled Swiss banking giant UBS AG suddenly replaced its CEO on Thursday, appointing Oswald J. Gruebel - former head of rival Credit Suisse Group - to take over immediately. Gruebel's experience in leading Credit Suisse through a turnaround before he left the company two years ago will prove invaluable, UBS said. He replaces Marcel Rohner, who has resigned. “With his previous employer Credit Suisse, Mr. Gruebel was the architect of a successful turnaround and restored confidence in the company in turbulent times,” said a statement from the Zurich-based bank. Gruebel said his top priority will be regaining the trust of clients and investors, followed by restoring the bank's profitability. In an internal memo to staff he announced he was planning considerable cost-cutting measures, without elaborating. Earlier this month, UBS reported a full-year loss $18.41 billion for 2008, the biggest loss in Swiss corporate history. Traders on the Zurich exchange welcomed the personnel move. UBS shares opened at $9.71, up 12.20 percent over Wednesday's close. Gruebel, who from 2003 to 2007 was co-CEO and then CEO at Credit Suisse, said he was convinced that Switzerland needs more than one big global bank. “The opportunity to lead UBS with its unique client franchise in wealth management, investment banking and asset management in these extraordinary times presents a fascinating, yet formidable challenge to me.” He said he would do all he could “to bring UBS back on a profitable, successful track.”
