Finma opens bankruptcy proceedings against Privatbank Hottinger
The Swiss Financial Market Supervisory Authority FINMA has opened bankruptcy proceedings against Bank Hottinger & Cie AG as of October 26, 2015. Finma announced that this measure had become necessary as the bank was threatened with over-indebtedness.
Finma determined some time ago that Bank Hottinger & Cie AG was below the minimum capital required by banking law due to constant losses as well as unresolved legal cases. The supervisory authority held intensive discussions with the bank and other stakeholders on ways to stabilize the institution, but the efforts made by the bank and its shareholders to this end had not been successful.
A planned recapitalization was not realized and the minimum capital remained undercut. A suitable investor to take over the bank was also not available. Thus, there was no prospect of a turnaround of the bank and the bank will be liquidated. Finma appointed Brigitte Umbach-Spahn and Karl Wüthrich (Wenger Plattner Zurich) as bankruptcy liquidators to conduct the proceedings.
Bank Hottinger & Cie AG is a banking group specialized in asset management with headquarters in Zurich and a significant branch in Geneva. The bank has total assets of CHF 145 million, approximately 1,500 clients and around 50 employees. The bank's origins date back to the 18th century. (ah)
