In a sudden burst of staff defections among big European private banks, Lloyds TSB Private Bank in Geneva has been hit by a walkout of about 10 staff shortly after the bank itself laid off some 15 personnel in the Swiss centre.
At the same time, 20 staff at UBS private banking in Germany quit, with most joining the Harald Quandt Trust in Hamburg. This entity, which manages money for the wealthy Quandt family which controls carmaker BMW, is an arm of Harald Quandt Holding, which has some $15bn under management.
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The exit was reportedly linked to disenchantment over the UBSs failure to separate part or all of its German arm into a separate corporation, thus allowing it more independence from the Zurich head office.
Barclays rumoured to be destination
It is the Lloyds development, involving the departure of about 25 personnel which could be the most disruptive, reflecting the fact that Geneva contains its front- and back-office private banking operations, say bankers in the Swiss centre. Barclays Wealth is rumoured to be one benefactor of the walk-out.
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By GlobalDataNo less than 400 staff work for the bank in Geneva, out of a worldwide workforce of more than 850 in a network covering Dubai, Gibraltar, Guernsey, Isle of Man, Jersey, Luxembourg, Miami, Monaco, Montevideo and Zurich.
In addition, much of Lloyds investment capabilities are based in Geneva, driving its advisory and discretionary services in other centres.
Senior defections?
Several of the defections are understood to involve senior advisers with major books of business. They include a well-regarded investment figure, Mike Ferguson.
The upset at the bank started in early April, when it announced 15 redundancies in its trust and banking departments. Within the space of days, 10 others decided to depart.
In a statement, Lloyds TSB Private Bank said: "We are implementing a number of changes in our business which will help us to improve our customer service.
"We acknowledge that organisational change can be difficult to make. Redundancies will always be a last resort.
"It is important to say that these changes are part of a wider initiative to grow our business. We hired over 50 people last year and our hiring continues."
Range of reasons for departures
The reasons for the departure, according to people familiar with the developments, ranged from relocations to highly-centralised senior management styles.
Some staff have been critical of a decision to move part of the banks operations to Nyon, an outlying district of Geneva.
These purpose-built premises are on the shore of Lake Geneva and are considered to offer better working conditions for staff, mostly engaged in support functions, according to Lloyds sources.
The Lloyds statement stressed that "our customer-facing staff will remain in Geneva".
Lloyds TSB Private Bank in Geneva is headed by managing director Piero Grandi, who joined the bank in 2008 after previously working for American Express Bank and Citibank.
