UBS hires rival's chief executive

Oswald Gruebel, named UBS chief executive yesterday, led turnaround efforts at Credit Suisse. (Daniel Berehulak/Getty Images)

BERN, Switzerland - Troubled Swiss banking giant UBS AG suddenly replaced its chief executive yesterday, appointing Oswald J. Gruebel - former head of cross-town rival Credit Suisse Group - to take over immediately.

Gruebel's experience in leading Credit Suisse through a turnaround before he left the company two years ago will prove invaluable, UBS said. He succeeds Marcel Rohner, who has resigned.

Investors celebrated the change, sending the bank's shares up 16.2 percent to close at $10.11 in Zurich.

UBS, one of the pillars of Switzerland's crucial banking industry, has had massive losses related to the US subprime mortgage crisis. Earlier this month, UBS reported a loss of $18.41 billion for 2008, the biggest loss in Swiss corporate history.

The bank also faces legal pressures in the United States over allegations it has helped wealthy Americans evade taxes.