It is not often that a general counsel is catapulted to the top of the European corporate ladder, but UBS has turned to Peter Kurer, its most senior in-house lawyer, to steer it clear of its troubles as the new chairman.

The bank is facing several lawsuits, including a claim by HSH Nordbank, a German lender, that it was misled over $500 million (£252 million) worth of collateralised debt obligations. US class action lawyers have also been circling since December.

A Swiss native, Mr Kurer, 58, was his country's foremost mergers and acquisitions lawyer when he joined UBS from Homburger, a Zurich-based law firm, in 2001. He became a member of the Group Executive Board a year later and also sits on the bank's Corporate Responsibility Commitee.

His position as general counsel already made him one of Europe's most powerful lawyers. UBS, with an annual legal budget estimated to be in excess of £200 million, carries huge weight with law firms and Mr Kurer caused a stir recently when he called for greater efficiency and accountability in the way the bank deals with its external advisers.

Lawyers who have sat on the other side of the table from Mr Kurer praise his competence and intelligence. He is described as conservative but charming, always quick with an anecdote.

Although he is Swiss, lawyers say he is almost Anglo-Saxon in demeanour, having received a masters degree in law from the University of Chicago and spent ten years at Baker & McKenzie, the giant Chicago-based firm.

Helmut Panke, the chairman of the UBS nominating committee, said: "Peter has a long and distinguished career as a lawyer in private practice and manager of a large legal and compliance function. The Board believes that this experience will prove most valuable at this juncture."

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