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This was not planned. Romeo Lacher (64) and Philipp Rickenbacher (53) thought they would escape with black eyes. However, a week ago on Friday, a very important board meeting took place that turned everything upside down. According to insiders, one group prevailed against Lacher and led to the ouster of CEO Philipp Rickenbacher.
The pressure increased because the bank decided to write off its entire 606 million franc position in real estate investor René Benko (46). It was clear that this total deletion would lead to a significant sacrifice. So why does this affect Philipp Rickenbacher when all officials, including Chairman of the Board Romeo Lacher, approve the loans?
According to a knowledgeable source, there has been criticism of the bank boss from the board for a long time. His way of communicating and doing business was controversial within the committee. Statements in November that they did not want to change the bank’s risk profile were met with a lack of understanding. “The Benko debacle was the ideal opportunity to get rid of him,” says one insider.
Lacher said in an interview with “Finanz & Wirtschaft” that Rickenbacher’s resignation was “a joint decision by him and the board of directors”. But Lacher’s resignation was also apparently controversial. Further departures of senior executives and board members could destabilize the bank. It is quite possible that the president will resign soon. He will face his first popularity test at the next general assembly meeting on April 11.
UBS’s top woman with good opportunities
Lacher needs to find a new boss for the bank before he resigns. The first talks are said to have already taken place. The first lists of candidates have already started circulating on WhatsApp channels, online platform Tippinpoint reported. Sabine Keller-Busse (58), who runs the Switzerland business at UBS, is given particularly good opportunities.
Keller-Busse has known Romeo Lacher for many years, from when they worked together at Credit Suisse and later sat on the board of stock exchange operator SIX. Both have a similar background: they worked in banks’ machine rooms and had an affinity for IT and processes. Also, both St. Gallen and received their doctorates in the same year. According to the information obtained, the two are already in contact for the vacant top position. A UBS spokesman declined to comment.
One thing is clear: There will be no internal solution. The bank made this clear last Thursday. Considering the major setbacks of the last few years, a refresher is understandable. The last three times Julius Baer has relied on a homegrown product and failed each time. Under the management of Boris Collardi (49), the private bank has maneuvered its way into major money laundering scandals. Julius Baer ventured into private debt under Philipp Rickenbacher, who worked at the bank for more than 20 years, and failed miserably. In between was an intermezzo by Bernhard Holder as CEO.
What differentiates Julius Baer from Pictet?
The collapse of Credit Suisse a year ago, now the fiasco at Julius Baer. Swiss banks are struggling with an unprecedented streak of bad luck. This is not just seen this way in Switzerland. Foreign countries also look on uncomprehendingly at the series of misfortunes of the Zurich “Gnome”. The influential London Financial Times wrote on Friday that Julius Baer’s relationship with Benko was “another shameful blow to Switzerland’s reputation as a solid financial centre” less than a year after the collapse of Credit Suisse.
Many bankers have a different image at Paradeplatz. A high-profile financial conference was being held in Zurich when the earthquake occurred last Thursday. 51 percent of respondents said the Swiss financial center is among the top 5 in the world. Five percent even thought he was the best in the world.
Given the string of bankruptcies, the question arises as to whether Zurich bankers have forgotten their craft. Zeno Staub (55), who was the CEO of Bank Vontobel until recently, reminded the conference of the days of banking secrecy. Back then, ROI played a minor role for customers. For them, “after-tax returns” were very important and good anyway. Staub said politicians are protecting a business model where “we all make good money.”
In the new era of transparency, returns are required. This pressure has apparently led private banks like Julius Baer to take greater risks. They brought in questionable clients (money laundering) and entered businesses they had no idea about (private debt).
Marc Pictet (50) also attended the financial conference. As a representative of the ninth generation of Bank Pictet, his family’s fortune is invested in the bank, which automatically supports a conservative business policy. Regarding the Julius Baer case, he merely said that Pictet did not offer any exotic credit transactions.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
