Falcon Private Bank has had a roller-coaster of a year. A deal with an investor from the Middle East will end the uncertainty surrounding its future, information obtained by finews.asia shows.
«We have strategic clarity and have things firmly under control,» said Martin Keller (pictured below). A statement by the CEO of Falcon Private Bank that not many would have expected anymore.
Most observers thought the remaining parts of Falcon to be sold at some point given the difficulties it encountered last year. The company in the first half of this year was on the brink, having lost a string of executives, relationship managers and – as a consequence – assets under management.
Shareholder Optimism
The bank in 2018 will post its third consecutive full-year loss, it has to grapple with a reputation in tatters following the scandal in connection with 1MDB and it still is under close scrutiny of Swiss regulator Finma.
In private banking, where altogether more healthy firms are fighting for growth and survival, the woes of Falcon would leave little hope for its future. But one of Falcon’s shareholders, Mubadala Investment Company based in Dubai, didn't share that view.
Key Board Appointment
And that's why Keller today is able to speak about the future of Falcon again. «It was a tough, but necessary process to bring the strategic conceptions of the shareholder, board and management in line.»
The appointment of Matthew Hurn to the supervisory board was a key step in the right direction. Hurn is a veteran, high-ranking manager of Mubadala, which is the state fund of Abu Dhabi. Hurn was the missing link so to speak and key to foster the development of a joint strategy.
Earlier this year, Keller had promised a clean break with the past and with the way Eduardo «Eddie» Lehmann, the former head of the bank, had managed the business. Lehmann had embarked on an overambitious strategy that was going way beyond the realms of private banking. His successor, Walter Berchtold, first had to clean up the 1MDB mess and then come up with a plan for the future.
- Page 1 of 2
- Next >>
