Does Swiss Banking Need a Revamp?

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July 22 (Bloomberg) –- Sparring Partners Founder Bernhard Bauhofer discusses the future of the Swiss banking industry, the falling off of the banking secrecy law and its impact on investors with Mark Barton, Anna Edwards and Caroline Hyde on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

The influx of new money into credit suisse but that was basically reflected by the overall trend in the industry.

That is nothing credit suisse pacific.

I would say -- credit suisse specific.

They said -- they paid historic high charges is still negatively impacting their reputation and it is putting it back to ubs.

To what extent does credit swiss and the rest of the banking sector anticipate the secrecy laws they have been trading strongly on the back of for many years were going to be challenged?

We are seeing a completely different picture in switzerland.

The egg banks like ubs, credit suisse have anticipated the falling off of the tanking secrecy law and have already -- banking secrecy laws.

They have changed their is this model on to an onshore business model.

They are strongly growing in the asian markets and that is a positive sign.

The other banks who do not have the huge sums [inaudible] are not really different trading products.

They are suffering from this link -- lack of secrecy.

We will see the console of -- consolidation in the inking industry.

What then of the rival growing?

Goldman sachs is offerings drunker wealth management -- offering stronger wealth management products.

Are we going to see a slow erosion?

They're fighting with the same tools now.

This was financial sector is competitive or noncompetitive like any other i natural center of the world.

There is no advantage for swiss banks anymore.

It is a question of size and potential and brand asset.

Jpmorgan and the u.s. banks are more profitable, more competitive in that sense.

Ubs and credit suisse and the rest will have to fight strongly.

It is the same game for everyone.

It will have to show how swiss banks are able to cope with the high costs in the country and other compliance issues.

It is a tough job for swiss banks.

We have differing models being forged by ubs and credit suisse.

It does not have any clear positioning.

That is the problem with credit suisse.

Investors have to be concerned about this investment bank exposure which has to be reduced but it is high risk and this forms a cultural clash of the bank.

On the one side you have the more traditional, more predictable wealth management unit and the short-term and high risk investment bank arm which does not give a clear picture about what credit suisse is standing for.

Contrary to ubs which is now number one in wealth management and has a much clearer profile than credit suisse.

Q does that mean ubs is number one in private banking, credit suisse's number four.

You do not see that gap closing?


it is a trust issue in the case of credit suisse.

Stakeholders have requested the ceo and the chairman to step down after this find that they paid to the u.s. government.

There was no reaction at all.

It is more governance issue and an issue of how to trust the management and the board of directors./ credit suisse will be lagging behind ubs and now this is the time for ubs.

Thank you for joining us.

This text has been automatically generated. It may not be 100% accurate.


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