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UBS has so far posted losses of $37.4 billion - the largest of any leading bank.
Peter Kurer told the Financial Times the bank should not fool itself in to thinking its standing had not been affected but said he expects confidence to return in about three years.
"We shouldn't fool ourselves. We cannot pretend there has been no reputational damage," he said.
"Experience says it goes away after two to three years."
The bank wrote off $18.4 billion of investments in 2007 and earlier this month announced a further $19 billion in asset writedowns.
Mr Kurer is set to officially succeed Marcel Ospel at the banks annual general meeting on April 23rd.
Former chairman and chief executive Mr Ospel admitted full responsibility for the firm's plight and stood down
Reports earlier today suggested that the bank may be forced to cut ten per cent of its workforce across investment banking and trading divisions.
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