Costs must be reduced, travel is being limited, and savings on consultants are being achieved.
The start of the week was explosive. Credit Suisse has announced that Andreas Gerber, head of its corporate banking division, is leaving the organization. One of the few fields where CS was unquestionably superior against the new rulers from UBS was corporate banking.
The reason why Gerber, who had worked at CS since 1989, had to depart quickly became the subject of rumors. He failed the required CBT exam, according to research by the SonntagsZeitung. The term “cross-border training” is CBT. It involves maintaining compliance with all the rules and restrictions that apply to international banking. Twice a year, this has to be done. Swiss banks have had problems much too frequently as a result of careless staff.
Most people have taken the test much too frequently to take it seriously now. According to legend, Gerber had the helper complete the questionnaire. No one can verify this version. However, it would be compatible with the zero-tolerance policy UBS intends to institute at CS.
Daniel Hunziker, who was formerly in charge of overseeing the assets of pension funds, will succeed Gerber. As a sort of side job, he will now take over as the head of corporate banking. Despite the fact that asset management and corporate banking seldom ever interact.
ruthless savings plan
The austerity policies were put into practice last week at the third level of management. Lists were created as a result for the September “Reduction in Force” (RIF) program. The steps were as follows: A strategy to retain 30% of the personnel in the new combined department had to be developed by the two business unit leaders, one from UBS and one from CS. Not only would CS workers lose their jobs, but also UBS staff would be concerned about their future employment. In reality, many more CS personnel would have to be let go than UBSers, according to one employee.
Additionally, there is a savings program for all other direct expenditures, such as expenses, travel, software licensing, and, most importantly, consultants, which are incurred in addition to labor costs. Another 10 to 20 percent of savings must be made here as well.
To be empty Uetlihof
Real estate-wise, it seems evident that the Zurich Uetlihof is to be demolished. Investment bankers, corporate clientele, and much more were centered there up to this point. The majority of this will now be relocated to an Opfikon UBS facility.
Who will utilize the Uetlihof in the future is unknown. CS is still required to pay the Norwegian Sovereign Wealth Fund for the ten-year lease even if the building is their own. Unnecessary expenses of half a billion francs will be incurred if a new tenant cannot be found. Apparently, UBS is still attempting to convince the city of Zurich to purchase the structures. Due of the Norwegians’ high pricing expectations, a first attempt last year failed.