Swiss financial market supervisor Finma has initiated bankruptcy proceedings against Zurich based private bank Hottinger & Cie, due to a risk of the bank becoming overly indebted, the regulator confirmed today.
Finma stated that the regulator had been aware of the bank’s failure to meet minimum capital requirements for a sustained period, resulting in unsuccessful efforts to recapitalise or to find a suitable investor.
Consequently, Finma has appointed Brigitte Umbach-Spahn and Karl Wüthrich (Wenger Plattner Zurich) as the responsible bankruptcy liquidators.
The regulator currently estimates that priviledged deposits, defined as assets up to CHF100.000 can be fully refunded from available assets without having to resort to to the depositor protection scheme for Swiss banks. Moreover, the regulator confirmed that the clients’ securities custody accounts will be segregated and refunded.
The bank, which is specialised in asset management has total assets in the region of CHF 145m with about 1,500 clients and 50 employees.