UBS brings back Ermotti as CEO

UBS said it’s bringing back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with a government-orchestrated plan to take over struggling rival Credit Suisse.

The bank said Wednesday that Ermotti’s appointment takes effect in a week. Ermotti was the bank’s top executive for nine years and will take over from CEO Ralph Hamers.

The bank said Hamers will remain at UBS during a transition period.

The hastily arranged, $3.25 billion deal for Credit Suisse aimed to stem the upheaval in the global financial system after the collapse of two U.S. banks and jitters about long-running troubles at Credit Suisse led shares of Switzerland’s second-largest bank to tank and customers to pull out their money.