BASEL, Switzerland (

TheStreet

) -- Shares of Swiss bank

UBS

(UBS) - Get UBS Group AG Report

rose about 4% Monday after the company appointed Sergio Ermotti as interim CEO after a $2.3 billion rogue trading loss forced the resignation of

Oswald Gruebel

over the weekend.

Ermotti joined UBS in April as head of UBS Europe, Middle East and Africa.

Swiss newspapers Monday suggested Ermotti was the favorite to win the CEO job on a permanent basis.

The UBS board on Saturday said it would continue its internal and external searches for a permanent CEO. Before the

rogue-trading scandal

, there was speculation that UBS was grooming Ermotti to succeed Gruebel.

"Ermotti is not the most risk averse -- he used to make some big trades (at Merrill Lynch.) But he does know how to manage risk," said a Geneva-based investment adviser who has worked with Ermotti,

TheStreet Recommends

Reuters

reported. "He has the experience and he's motivated."

Ermotti worked at

Merrill Lynch

for 16 years before joining Italy's

UniCredit

in 2005.

-- Written by Joseph Woelfel

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Joseph Woelfel

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