Julius Baer is marked in the U.S. as a Swiss bank for American tax dodgers. That isn't stopping the bank from flirting with a return to the States – namely, to the unofficial capital of Latin America.
Miami could be Julius Baer's newest branch as soon as next year: the Zurich-based bank's management and board are considering a move into the U.S., a source familiar with the matter told finews.asia.
The bank didn't comment. Florida's largest metro area city could become a new hot spot – in several ways. Former Julius Baer banker Matthias Krull was snapped up by police there five weeks ago. The German banker recently pleaded guilty to helping launder $1.2 billion in Venezuelan funds likely siphoned from PDVSA, a state-backed oil firm.
U.S. officials are mum on through which bank exactly Krull, who left Julius Baer in June, laundered the funds. The bank, which also faces a Swiss regulatory investigation, has launched an internal probe.
«Wall Street South»
Krull left Julius Baer for smaller Genevan rival Gonet, along with three other former Julius Baer bankers. Their move is linked to Julius Baer's strategic adjustment of its Latin American arm.
The revamp leaves Miami – affluent Latin America's unofficial capital – nearly a must for Julius Baer, as «Citywireamericas» also reported. South America's diaspora has flocked to Miami, where they have flourished amid the influx of entrepreneurs and expats. «Wall Street South», as it has become known in the finance industry, is the second most important financial hub in the U.S., attracting asset managers, hedge funds, private banks, and others.
Novelty for Swiss Banks
The billions of Latin American money floating around Miami are not to be sneezed at: many clients prefer to book their offshore assets in the U.S. as opposed to other havens like Panama or the Bahamas. The U.S. represents more political stability, and many clients prefer to be heavily diversified into U.S. dollar assets.
Julius Baer isn't the first bank to notice the trend: Genevan private bank Syz is in Miami, as is CBH Compagnie Bancaire Helvétique after buying local Brickell Bank. The increasingly big pool of banks extends to providers like Genevan banking software firm Temenos, which also maintains an office in Miami.
Fewer LatAm Markets
Beatriz Sanchez (pictured below), Julius Baer's new boss for Latin American, is behind the Miami expansion plan. Her job is to reinforce the focus of the Swiss bank's business locally – and of course boost profitability.
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