Switzerland's banking regulator was forced to drop an enforcement probe against ex-Raiffeisen boss Pieren Vincenz last month. One of his former industry peers is scathing in his criticism of the events.
Swiss private bankers are known for their discretion and secrecy, and public fights among high-profile members of the guild are exceedingly rare. That changed this week: «This can't be true!» Daniel Rueedi wrote in a letter seen by finews.com. He is one of three unlimited partners at Basel's Baumann & Cie.
Why does it matter? Switzerland's private banking industry has several unspoken rules: banking secrecy is sacrosanct even in «shop talk» among private bankers over drinks after work, the fraternity closes ranks under attack, and the industry is famously tight-lipped and discreet about its rivalries.
Even arch-rivals like UBS' Sergio Ermotti and Tidjane Thiam of Credit Suisse will be openly complimentary, and the more discreet members of the industry will typically refrain from referring to rival houses by name.
What angered Rueedi enough to write his thoughts down on pen and paper? The halt of a fitness and probity test for Pierin Vincenz, who ran Raiffeisen for 19 years, shortly before Christmas.
Conflicts of Interest?
Switzerland's regulator, Finma, had opened the probe to look into potential conflicts of interest between personal investments Vincenz made, alongside stakes Raiffeisen took. The focus was Investnet, which Vincenz owns 15 percent of and presides as Chairman.
Finma was forced to set aside the probe one month because it doesn't have authority over the former banker anymore – Vincenz's career as a board member in financial services is over after he dropped his last mandate at a listed firm (Chairman of Helvetia Insurance).
Shadow Over 30 Years
The episode casts a shadow over Vincenz's 30-year career in Swiss banking – and led private banker Rueedi (pictured below) to criticize the former banker as well as Switzerland's financial regulator.
Vincenz' pledge «not to assume this type of appointment at financial companies in the future» is merely symbolic, given the bankers's age, Rueedi said. «At 61, this surely isn't such a burden.»
- Page 1 of 2
- Next >>
