The US government’s war on tax evaders and offshore banking has claimed the head of Marcel Rohner, the CEO of UBS. UBS, of course, was just fined over $700 million for its role in actively helping clients avoid the tax man, and it’s still facing demands to turn over 50,000 client names.
The new CEO is 65-year old Marcel Gruber, who was formerly at Credit Suisse before retiring in 2007. That Gruber came over for from a rival may be something of an indignity. MarketWatch compared it to Joe Torre managing the Red Sox.
Even if the banking industry stabilizes, UBS may have a tough time of it. Between the government’s war on tax evaders and the Allen Stanford case, the appeal of offshore accounts may be greatly diminished compared to the regulated, vanilla banking in the US.
Shares of the bank traded up 10% on the news.