The last word hasn't yet been spoken in the demise of Bank Hottinger, research by finews.ch showed. The private bank collapsed at the end of October.
Banque Heritage, a private bank based in Geneva, wants to assume the majority of client assets of Bank Hottinger, according to well-informed financial market exponents in Zurich. A spokesman at Banque Heritage didn't deny or confirm this information upon request by finews.ch.
The asset deal involves about 1.2 billion francs and a small number of advisers at Hottinger will be taken on by Heritage to help with the transaction. A Heritage manager told finews.ch that this information had already been discussed in the financial market community.
There is a second report circulating on Wednesday, taking reference to a suspected case of embezzlement. This content of this report is more than two years old and was widely written about. The extent of the embezzlement (100 million francs) has long been known.
Losses and Unresolved Litigation
Swiss financial market regulator Finma on October 26 opened bankruptcy proceedings against Hottinger. The institute, founded 1786, wasn't able to meet the minimum capital requirement following a string of losses and unresolved litigation (not least the U.S. tax dispute).
Finma had examined the possible reconstruction of the business, to no avail, as a planned increase of capital didn't take off. The bankruptcy proceedings were initiated as the liquidation costs threatened to lead the institute into overindebtedness.
No Comment From Liquidator
The regulator appointed Brigitte Umbach-Spahn and Karl Wuethrich (Wenger Plattner Zurich) as liquidators. Wuethrich didn't comment the report about a deal involving Hottinger and Heritage when approached by finews.ch. A Finma spokesman said he couldn't comment about «it».
Bank Hottinger was a private banking specialist based in Zurich with an important branch in Geneva. The bank had a balance sheet total of 145 million francs, advised 1,500 clients and employed 50.
Banque Heritage, founded as a family office in Lausanne in 1986, is involved in the consolidation of Swiss private banking for a second time. In February, Heritage assumed part of the client assets of Bank Standard Chartered (Switzerland) when that bank failed.
The British company had 2 billion francs under management and employed 74 people. Banque Heritage didn't say how many assets it assumed and how much it paid for the transaction.
Catalan-Swiss Origins
The banking institute is majority-owned by the Esteve family of Catalan-Swiss origin. It has assets under management amounting to 6 billion francs, has its headquarters in Geneva and offices in Zurich, Lugano and branches in Guernsey and Montevideo. Heritage in the capital of Uruguay acquired the business of the U.K.'s Lloyds Banking Group three years ago.
Taking over client assets from other private banks was part of its development strategy, the spokesman said. The bank aims to strengthen its position in key regions. Heritage's priority markets are countries in Europe, Middle East and certain emerging markets.
