The name of the former SNB president and his employer, Blackrock, came up repeatedly in connection with UBS's emergency takeover of Credit Suisse. Philipp Hildebrand speaks out for the first time about his role in the turbulent days.
The rumor mill was churning in full swing in the hectic hours before the emergency rescue of Credit Suisse by rival UBS. Among others, Blackrock, the world's largest asset manager, was considered a possible buyer of the crisis-ridden big bank. It was said that the US firm wanted to take over parts of Credit Suisse at a ridiculous price.
Blackrock was said to be particularly interested in the Swiss bank's fund business.
In those days, the media speculated about the role of Philipp Hildebrand, who is Blackrock's vice chairman. It was suspected the former Swiss National Bank (SNB) president could have mediated between the Swiss government and the two banks. The financial cognoscenti speculated Hildebrand could take on a directorship role at the merged bank.
Not Directly Involved
In an interview with Germany's «Frankfurter Allgemeine Zeitung» (in German, behind paywall), Hildebrand gave insight into the turbulent days surrounding the takeover. Asked whether he'd been involved in the emergency measures, the top manager replied, «Not in a direct sense.»
He shared his experiences from the financial market crisis when he had been approached. Blackrock also examined whether it «Could have been part of a good solution,» he revealed.
Possible solutions were examined but couldn't be realized because of timing and the business model. Blackrock never sought to become a bank or take one over. «The most we could have done was participate in a solution in some areas.»
Homegrown Crisis
While the demise of Credit Suisse saddened him, he stressed it was a home-brewed crisis, and investors and customers lost confidence in the bank's business model and management.
The difficult economic environment contributed to the situation, but you «always have to expect that when you're in the banking business.»
No Further Bank Quakes
Regarding bank stability in general, in the current environment, weak points become apparent particularly quickly, as was seen in the spring with the US regional banks and Credit Suisse.
However, he doesn't expect another bank quake like the one in the spring, as the difficulties then were mainly due to the speed of the sudden rise in interest rates. «We'll not see this happen again,» Hildebrand said.
