Swiss financial market supervisor FINMA has initiated bankruptcy proceedings against private bank Hottinger & Cie due to a risk of the bank becoming overly indebted.
According to the regulator, the Zurich-based bank did not meet the minimum capital requirement under regulatory law owing to sustained losses and unresolved litigation.
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The regulator held intensive discussions with the bank and other involved parties to return the bank to a stable and sustainable position. However the attempts to recapitalise the bank or find a suitable investor did not materialise, FINMA said.
Brigitte Umbach-Spahn and Karl Wüthrich (Wenger Plattner Zurich) have been appointed as the responsible bankruptcy liquidators by the FINMA.
That bankruptcy liquidator will start promptly refunding client assets of up to CHF 100,000 (privileged deposits). The regulator added that current calculations indicate that privileged deposits can be fully refunded from the available assets.
Hottinger & Cie specializes in asset management with a major subsidiary in Geneva. The bank has total assets in the region of CHF145m with about 1,500 clients and 50 employees.
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