Swiss Banking's Hot Spots in 2018
5. Saudi Arabian Fata Morgana
The Asian wealth boom hasn't been entirely unproblematic for Swiss wealth managers (see point 4); they can now add business with Saudi Arabia's wealthy to their list of worries. Crown Prince Mohammed bin Salman's crackdown on the kingdom's wealthy has roiled Swiss private banks, who count Saudi Arabia's wealthy among their clients, as finews.asia has previously reported.
The shakedown is especially dicey for Credit Suisse: Saudia Arabia could snap up a stake in the Swiss bank, according to media speculation. They plan might play into the hands of activist investor Rudolf Bohli, who is pushing for a split-up of the bank. Saudi Arabia could also exercise considerable pressure on Qatar, Credit Suisse's second-largest investor and the kingdom's archenemy.
The bank will have the first chance to break its ten-year Qatar ties in October, when a debt instrument can be «called». Credit Suisse has already decided to do so, finews.asia reported late last year, citing several sources.
