In September, the then chief executive Oswald Gruebel stood down after one of the traders on its Delta One desk was arrested over a $2.3bn rogue trading loss.
The firm has endured a torrid 2011 with this high-profile fraud and false accounting still under investigation sitting alongside a number of the promised 3,500 headcount losses that are still to be finalised as well as the steady flow of senior managers leaving the asset management business.
In June this year, Schroders announced it had poached Bob Jolly from UBS Global Asset Management as head of global macro within its fixed income team; last month Brian Gallagher left the firm with his UK Equity Income Fund now run by Edward Peter-Hoblyn and Richard Lloyd.
Along with the appointment of Ermotti, UBS also announced former Bundesbank president Axel Weber is to be the new chairman. Effective from the Annual General Meeting in May next year he will replace Kaspar Villiger who was in charge of the board and its plan to concentrate on wealth management at the expense of investment management.
The future of the investment banking operation in London is still under threat, with 45% of the 3,500 headcount reduction and 55% of the restructuring cost cuts to come from the entire investment banking division.
Villiger said: "The nomination of Mr. Weber as chairman of the Board and the appointment of Mr. Ermotti as group CEO will bring essential stability and clarity to UBS.”
