All articles by PBI Editorial
PBI Editorial
UBS wins ‘poaching’ injunction
In the bitterest legal battle in private banking in years, UBS has won the first stage of a campaign to stop former employees now at UK wealth startup Vestra Wealth from poaching its investment clients or the banks staff. High Court judge Justice Openshaw in early August granted UBS a court order to prevent five former UBS employees and their new employer, Vestra, from approaching any UBS wealth management or stockbroking clients or asking any more UBS employees to leave the bank to join the startup.
Scaturro to lead Goldman wealth drive
Competition for high-end US clients with upwards of $20 million of assets is becoming intense, marked by the resurfacing of Peter Scaturro at Goldman Sachs in a top wealth role and the defection of additional senior executives fromUS Trust, now part of Bank of America.Peter Scaturro, who recently controversially left his position as chief executive of US Trust during its $3.3 billion acquisition by Bank of America (BofA), has joined Goldman Sachs, where he will be global head of its expanding private wealth management business.His appointment signals new competition for the ultra high net worth client with assets of $20 million and above, which both US Trust and Goldman Sachs target, according to New York bankers.This is the third senior role in wealth management for Scaturro, who is 47, in as many years
SocGen teams up with Rockefellers
SG Private Banking has agreed a global alliance with Rockefeller & Co, the US multi-family office, in a deal which could have major implications for private banks increasingly intense efforts to gain access to the ultra high net worth individual (UHNWI).The accord will see the French group take a minority equity interest in Rockefeller, and entails Daniel Truchi, SG Private Banking chief executive, and Marc Stern, chairman of Socit Gnrale Global Investment Management and Services for North America, joining the 11-strong board of directors at Rockefeller.Rockefeller can help us to shorten the time it will take to access the UHNWI market and to offer complete solutions for family offices and UHNWIs, Truchi said, citing the need for SG to offer a consolidated approach, both in terms of report and document consolidation as well as managing financial and non-financial assets.It is this approach which has seen family offices gain an increasingly significant share of the wealth market
RBS hits Chinese wall in joint venture
The Royal Bank of Scotlands planned Chinese private banking joint venture with Bank of China (BOC), one of the most ambitious projects yet to grab high net worth clients in the Asian country, seems to be running into obstacles. Disagreement has emerged between the two banks over how big a stake each side will have in the proposed venture, according to Beijing bankers
Non-domicile rules worry hedge fund managers
Wealthy hedge fund managers in London are expected to lead an outflow of so-called non-domiciled individuals from the UK in the face of sweeping changes proposed to the preferential tax treatment given to foreign individuals Monaco and Switzerland, both keen to attract the hedge fund industry, are expected to be among the destinations for these emigrating financiers.Investment management consultancy Kinetic Partners warned that many hedge fund founders will be affected by the tax crackdown as they are non-domiciles It claimed there are dozens and dozens of hedge fund managers who are moving at least some of their operations to Switzerland.The number of non-dom individuals in the UK has almost doubled since 2003 to an estimated 115,000
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Banks seek Northern Rock spoils
The private banking divisions of the main UK clearing banks are competing to attract high net worth depositors exiting from beleaguered Northern Rock, the UKs fifth-largest mortgage lender which was saved by a last-minute government rescue this month.The bank, which has offered among the highest savings rates available in the UK, has attracted individual deposits ranging as high as £20 million ($40 million).As a result of the UK governments rescue plan, all existing Northern Rock deposits qualify for what is in effect a state guarantee This should provide the big UK clearing banks HSBC, Barclays, Lloyds TSB and Royal Bank of Scotland with opportunities to offer alternative savings accounts as well as related investments through their private banking divisions, as withdrawal cheques clear through the banking system.Chancellor of the Exchequer Alistair Darling has hinted at a wide-ranging overhaul of the banking deposit guarantee scheme, insuring accounts worth up to £100,000, in the wake of the Northern Rock crisis.The outflows at Northern Rock represented the first major run on a bank in the UK for more than 100 years.The bank still remains in crisis and a number of other banks have declined to acquire it, although it is felt to have little future as an independent entity
Geneva private banking boutiques are back
Traditional smaller private banks in Switzerland and Liechtenstein, houses hitherto seen as marginalised minnows by the big global wealth management powerhouses, claim they are gaining a significant competitive edge as a result of the US subprime crisis. This marks a potential resurgence of the boutique firm a model frequently depicted as being in a strategic cul-de-sac compared with the international full-service private banks such as UBS and Citigroup.Banque Piguet, Pictet, Mirabaud and Union Bancaire Prive and others indicate that, with minimal exposure to US collateralised debt obligations, theyre now winning the confidence of nervous clients.Looking to smaller playersIn contrast, the huge write-downs on subprime exposures at large rivals are prompting clients to question whether it is wise to hold money in such brand-name players
Deutsche Bank plans 2,500 new advisers
Deutsche Bank, positioning to build a competitive edge over rivals weakened by the credit crisis, has announced plans to create about 2,500 new advisory positions at its Private and Business Clients division in Germany and other European core markets over the next four years.It will also open about 400 branches across Europe by 2012, of which 150 will be in Germany.Setting out its ambitions, Deutsche, one of the few major banks which has not been deeply embroiled in the credit crisis, declared the aim is to strengthen its leadership in wealth and related business banking in its German home market and also to enhance its strong position in the rest of Europe.Deutsches Private and Business Clients division typically deals with wealthier clients, often owners of small- and medium-sized firms, and where personal and company needs are often inter-related
Credit Suisse takes PBI global prize
Credit Suisse was named the Outstanding Global Private Bank at Private Banker Internationals 18th annual awards ceremony, this year held in Singapore. Tom Allen, managing director and private banking COO at the Swiss bank, picked up the prize in an evening celebrating excellence in the private banking industry
Sarasin weds AIG for mass wealth
Switzerlands Bank Sarasin & Cie and American International Group (AIG) Private Bank plan jointly to create a bank to cater to less wealthy segments an alliance aimed at targeting the mass affluent client base.Sarasin, controlled by the Netherlands Rabobank, will own 57.5 percent of the venture and AIG the remainder The venture also plans to expand into new markets in Eastern Europe.The new bank, which is to be operational by the end of 2008, will target clients with up to CHF500,000 to avoid cannibalising higher-end business from AIG and Sarasin, which typically deal with clients who have at least $1 million to invest