The customer funds are sold, the Falcon Private Bank goes into liquidation. That makes CEO Martin Keller sad – but not just how he agrees finews.ch says.
Mr. Keller, you took over the top post at Falcon Private Bank in an emergency at the end of 2017 – the institute is now on the way to liquidation. Is this an exit that you had to reckon with from the start?
The current outcome 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.
The success has not come. Who is to blame?
I see three main reasons. First, the history of the institute initially proved to be a stumbling block. We had to put considerable resources into processing and compliance structures …
… You speak of the involvement of the bank in the corruption scandal surrounding the Malaysian sovereign wealth fund 1MBD, for which Falcon was fined by the regulator.
Second, although we have fundamentally restructured and redesigned the bank, it is extremely difficult to put a bank that has been set up for a completely different dimension of client assets on a sustainable basis.
«It became clear that the bank cannot work profitably in the medium term»
And finally, as a small bank in the highly competitive private banking environment, we were unable to develop enough new business.
The owner, the ruling family from the Emirate of Abu Dhabi, has once again put significant funds into the bank under your aegis. Shouldn’t the shareholder have pulled the plug earlier?
It is important to me to note that the decision to exit private banking and orderly handling of the banking business was made jointly by the board of directors, management 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 committed itself so that the institution can be managed in a controlled manner.
Apparently, the assets under management go to a local private bank. To which?
We are confident that the asset deal with a Swiss bank will come about soon.
«The entrepreneurial side was extremely exciting»
Until then, we don’t want to give names. We assume that the customer advisors and the subsidiaries in Dubai and Luxembourg will also transfer to the buyer in a transaction.
And what happens to the other Falcon employees?
The controlled processing of the company is guaranteed, as I said. It is also ensured that a social plan is used for the employees, although we would not be obliged to do so with our size.
The fight and turnaround 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 a lot of positive things in the past three years: the entrepreneurial 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 everything we could to make the turnaround with Falcon. But it shouldn’t be.
Martin Keller has been CEO of Falcon Private Bank since September 2017 after being elected to the board just a few months earlier. Before that, Keller worked at Credit Suisse as CEO Asset Management for the EMEA region and as Chairman of the Board of Directors of Aventicum Capital, a joint venture between Credit Suisse and Qatar Holding. The British hedge fund provider Man Investments as well as Deutsche Bank and UBS Warburg were further 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 still be independent in five years.
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