Ex-Goldman Sachs banker Sanchez needs to decide which onshore markets Julius Baer will focus on, and where the bank needs booking centers for offshore money in the remaining markets. With roughly $40 billion locally, Julius Baer isn't big enough to tackle every market in Latin America's fragmented wealth market.
Her strategic overhaul is nearly finished: Julius Baer wants to concentrate its offshore might on Brazil, Mexico, and Argentina. The bank is already present in the first two, but tends to Argentine clientele from an office in Uruguay – thus, a deal in Argentina in the near future is likely.
U.S. as Core Market
The wider Latin American offshore strategy is still being discussed, a source familiar with the matter said. Sanchez's push into Miami makes sense given the city's role for Latin America. She also has personal ties: Sanchez studied in Miami, and later led Goldman's Latin American business from there.
By contrast, Julius Baer's board led by Daniel Sauter is still lukewarm. The bank's last foray into the U.S. ended disastrously: Julius Baer was forced to pay $547 million to settle a tax evasion criminal suit in 2015.
The terms of the 2015 settlement lapse at the end of the new year, which would ease the way back into the U.S. market for Julius Baer considerably. A return to the U.S. would be fitting historically: descendants of Julius Baer's founding family headed for the east coast to escape from World War II. The bank sold its onshore U.S. business in 2005 to UBS, deciding to focus on offshore Swiss banking instead – a fateful decision culminating in the 2015 settlement.
- << Back
- Page 2 of 2
