The world this week--Business
Sergio Ermotti is returning to UBS as chief executive to guide the Swiss bank’s emergency takeover of Credit Suisse.
Mr Ermotti ran UBS from 2011 to 2020.
He is replacing Ralph Hamers, “who has agreed to step down to serve the interests of the new combination”, according to UBS.
Merging the two banks is immensely complicated, it said, which calls for Mr Ermotti’s “unique experience”.
There was another casualty from the fallout surrounding the collapse of Credit Suisse.
Ammar al-Khudairy resigned as chairman of Saudi National Bank, a big investor in the Swiss bank.
His comments in March about not investing more in Credit Suisse were followed by a market rout.
Deutsche Bank clawed back most of the losses from a sell-off caused by the soaring price of its credit-default swaps, which act as an insurance against a default on its debts.
In a jittery market the sell-off spread to other banking stocks, but they, too, recovered.
America’s Federal Deposit Insurance Corporation engineered the sale of Silicon Valley Bank’s deposits and loans to First Citizens, a bank based in North Carolina.
The FDIC estimates that the failure of SVB will cost its deposit-insurance fund $20bn.
Binance, the world’s biggest crypto exchange, faced its most serious legal challenge yet when a regulator in America accused it of operating illegally.
In a civil lawsuit the Commodity Futures Trading Commission alleged that much of Binance’s trade and profit comes from America, but it had never registered with the CFTC and “disregarded” financial laws.
Changpeng Zhao, Binance’s boss, said the complaint was “unexpected and disappointing”.
American prosecutors added another charge against Sam Bankman-Fried, who ran FTX until the crypto exchange’s spectacular collapse last November.
Prosecutors now contend that Mr Bankman-Fried paid $40m in bribes to Chinese officials in 2021 to allow him access to accounts linked to a sister company.
Bob Iger continued his shake-up of Disney.
Isaac Perlmutter was removed as chairman of Marvel Entertainment (which is separate from Marvel Studios); his relationship with Mr Iger has been described as rocky.
Disney is also scrapping its nascent attempt to expand into the metaverse, a strategy that envisioned immersing audiences in a digital “experience”.
Mr Iger is focused on trying to turn a profit from Disney’s streaming platforms.
Elliott Management, an activist hedge fund, withdrew plans to nominate directors to the board of Salesforce, after the business-software company produced a solid set of earnings and a new strategy for growth.
Elliott and other shareholders had criticised Salesforce for splashing out on costly acquisitions, such as Slack and Tableau.