Zurich-based private bank Julius Baer could be a major beneficiary of Credit Suisse's emergency rescue. CEO Philipp Rickenbacher is very clear about that.

The negative headlines surrounding Credit Suisse's troubles resulting in its forced takeover by UBS have been well documented and damaged the reputation of the Swiss financial industry. It has also prompted Julius Baer CEO Philipp Rickenbacher to call for change.

In an interview with the «Financial Times» (behind paywall) on Monday, Rickenbacher said the Swiss financial industry is an «outstanding ecosystem», but is coming under pressure from the international media. «We as Swiss bankers have to respond,» he added. He warned that Switzerland's position as the bank to the super-wealthy is not «god-given.»

Talking to Credit Suisse Employees

In Switzerland, Rickenbacher said he is seeing clients moving their assets to «quality», with a shift towards more traditional wealth managers and away from the likes of UBS and Credit Suisse. The reason behind this is the riskier business models of UBS and Credit Suisse due to their investment banking operations.

«Our model...has worked very well for us, let's put it that way,» he told the «FT». 

For Credit Suisse staffers looking to jump ship, Rickehbacher said Julius Baer is having  «constructive discussions» with those that want to leave after the UBS takeover. He said the bank has positions to fill in Latin America, Asia, including Hong Kong, as well as Europe and Switzerland.

Julius Baer manages 424 billion Swiss francs in assets from wealthy clients around the globe. Following the possible demise of Credit Suisse, Julius Bear stands to become the third-largest Swiss wealth manager after Geneva-based Pictet.

A Complex Takeover

The sheer magnitude of the takeover is a daunting task and «is going to take a lot of resources and effort» and is full of complexity, he told the news outlet.

Rickenbacher sees the takeover as raising questions about moral hazard and said regulations enacted after 2008's financial crisis should be reviewed.

The regulations around too-big-to-fail were designed to solve one problem, «and in this case, they could not solve that problem,» he said. »My gut feeling and moral compass says that a private institution should be able to fail, and that is a good starting point,» he said.