UBS HAS turned to the veteran former boss of arch-rival Credit Suisse to be its new chief executive in an attempt to boost confidence in the bank amid massive losses and fears for the group’s private banking business.

The move to appoint Oswald Grübel (65) comes as UBS seeks to regain credibility after massive writedowns and a dangerous dispute with the US over alleged assistance in tax evasion.

Mr Grübel said he had not envisaged coming out of retirement after leaving Credit Suisse in May 2007. After rejecting the idea from UBS last month, he had let himself be convinced.

"I owe the financial centre of Switzerland a lot. I wholeheartedly believe it needs two strong global banks, not just one," he said. – ( Financial Timesservice)