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Client funds are sold, Falcon Private Bank goes into liquidation. That saddens CEO Martin Keller, but not just how he agrees. finews.ch He says.
Mr. Keller, assumed the senior position at Falcon Private Bank in an emergency in late 2017; now the institute is on the way to liquidation. Is this an outlet you had to count on from the beginning?
The current result has always been a possible scenario. But at Falcon we did everything we could to prevent it from happening. When I took over as CEO after half a year on the Board of Directors, I had a clear idea of how the bank would be successful.
Success has not come. Who to blame?
I see three main reasons. First, the institute’s history initially turned out to be an obstacle. We had to commit considerable resources to the processing and compliance structures …
… You speak of the bank’s involvement in the corruption scandal surrounding Malaysia’s sovereign wealth fund 1MBD, for which the regulator fined Falcon.
Second, although we have fundamentally restructured and redesigned the bank, it is extremely difficult to establish a bank that has been created for a completely different dimension of customer assets in a sustainable way.
“It became clear that the bank cannot operate profitably in the medium term”
And finally, as a small bank in the highly competitive environment of private banking, we were unable to develop enough new business.
The owner, the ruling family of the Emirate of Abu Dhabi, has again placed significant funds in the bank under his auspices. Shouldn’t the shareholder have disconnected earlier?
It is important to me to note that the decision to abandon private banking and the orderly management of the banking business was made jointly by the board of directors, the administration, and the owner. This is because it became clear that the bank cannot operate profitably in the medium term. The shareholder has always supported the bank and has now promised that the institution can be managed in a controlled manner.
Apparently, the assets under management go to a local private bank. Which?
We are confident that the asset deal with a Swiss bank will be made soon.
“The entrepreneurial side was extremely exciting”
Until then, we don’t want to give names. We assume that customer advisors and subsidiaries in Dubai and Luxembourg will also transfer the buyer in one transaction.
And what about the other Falcon employees?
Controlled processing of the company is guaranteed, as I said. An employee social plan is also guaranteed to be used, although we would not be required to do so at our size.
The fight and change now ends in defeat. Does that fill you with bitterness?
Of course, it’s sad that this is how it ends for Falcon. At the same time, I have seen many positive things in the last three years: the business side was extremely exciting and I was able to work with highly motivated and creative people who were not discouraged by setbacks. Together we did our best to turn around with Falcon. But it shouldn’t be.
Martin Keller He has been CEO of Falcon Private Bank since September 2017 after being elected to the board a few months earlier. Prior to that, Keller worked for Credit Suisse as CEO Asset Management for the EMEA region and as Chairman of the Board of Directors for Aventicum Capital, a joint venture between Credit Suisse and Qatar Holding. British hedge fund provider Man Investments, as well as Deutsche Bank and UBS Warburg were other stations.
Will UBS and Credit Suisse merge after the Corona crisis?
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Yes, because they will not be able to bear their high costs on their own.
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Yes, there will be cooperation in some areas.
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UBS will swallow Credit Suisse.
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Credit Suisse will swallow UBS.
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No, both banks will remain independent in five years.
