Weekly Global News Wrap: UBS appoints Sergio Ermotti as group CEO; French authorities search banks on suspicion of fiscal fraud
And a top US regulator said Silicon Valley Bank did a terrible job of managing risk.
UBS has appointed former Sergio Ermotti as Group CEO following its acquisition of Credit Suisse.
Ermotti was group CEO at UBS for nine years, from November 2011 to October 2020, and is currently chairman of insurance company Swiss Re.
The leadership change comes “in light of the new challenges and priorities facing UBS after the announcement of the acquisition,” UBS said in the announcement.
Current UBS CEO Ralph Hamers is set to remain at UBS to advise the bank during the transition period to “ensure a successful closure of the transaction and a smooth hand-over,” UBS said in an announcement.
French authorities searched the Paris offices of several large banks, including Societe Generale, BNP Paribas, and HSBC on suspicion of fiscal fraud.
Societe Generale confirmed the searches, declining further comment. The other banks concerned did not immediately reply to requests for comment.
The PNF financial prosecution office said in a statement the probe was linked to so-called "cum-ex" dividend stripping, a trading scheme whereby banks and investors swiftly trade shares of companies around their dividend payout day.
The practice aims to blur stock ownership and allow multiple parties to illegally reclaim tax rebates on dividends.
A top US regulator said that Silicon Valley Bank (SVB) did a “terrible” job of managing risk before collapse.
In the first congressional hearing into the sudden collapse of two US regional lenders and the ensuing chaos in markets, both Democratic and Republican lawmakers pressed the Federal Reserve’s top banking regulator on whether the central bank should have been more aggressive in its oversight of SVB.