Magazine article American Banker

Banca Della Svissera Italiana Slashing Its U.S. Operations

Magazine article American Banker

Banca Della Svissera Italiana Slashing Its U.S. Operations

Article excerpt

NEW YORK - Banca della Svizzera Italiana has shut down most of its U.S. operations, firing more than half of its staff and shifting most businesses into Swiss Bank Corp.

The changes come in the wake of Swiss Bank's purchase last year of a majority stake in Banca della Svizzera, based in Lugano, Switzerland.

Though some consolidation was expected, the rapidity of the changes in New York were surprising. Banca della Svizzera has moved aggressively in recent years to build lending and private banking franchise in the United States, and just a few months ago was preparing to offer U.S. clients its expertise in global investment management.

"We'll be almost absent from lending," said Guido W. Schuler, senior vice president for the New York office.

Shift Came June 30

In a statement responding to questions, the bank said it curbed all lending from its U.S. branch on June 30, transferring its private lending, real estate, and corporate loan portfolios to Swiss Bank.

Bank officials would not disclose the size of Banca della Svizzera's U.S. portfolio.

The bank's New York-based trade finance unit is being sold to an outside party, a source said.

The bank said in its statement that its New York staff would be reduced from about 70 people to 35. An officer, however, said about 50 out of 80 employees would lose their jobs.

The only units that will remain in New York under the Banca della Svizzera name are a money market and foreign exchange trading operation and a small staff offering advisory services to international clients.

Key Figure Leaves

Prominent among those who have left the company is Louise F. Gunderson, who joined Banca della Svizzera with much fanfare from Chemical Banking Corp. in 1988 to launch a private banking group.

Ms. Gunderson, the most senior female officer of a Swiss bank, had joined with six associates from Chemical's domestic private banking group. …

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