The venture would be symbolically important for the Swiss bank, marking a return to private banking on US soil after an agreement to transfer its US brokerage to Wells Fargo & Co in 2015.
Wednesday 09, October 2019
Credit Suisse Group is considering a return to US wealth management after a four-year absence as Chief Executive Officer Tidjane Thiam seeks to boost growth in private banking, reported Bloomberg.
Talks have focused on the ambition to add $15 billion of assets under management at a new base in Miami, mostly catering to wealthy Latin Americans. If the bank moves ahead, it could employ up to 30 people including control and support staff in Florida, however, no final decision has been taken and talks are at an early stage.
The US is one of the biggest offshore wealth centres in the world, with Miami especially favoured by Latin America clients because of its close geographic and cultural links. According to the BCG Global Wealth Report, buoyed by a more favourable regulatory environment, the US is likely to see strong growth from Latin American and Asian investors.
Switzerland’s second-biggest lender reached an agreement in 2014 to plead guilty and paid around $2.6 billion to the US Justice Department and regulators for helping US citizens hide money. The bank shifted strategy a year later under Chief Executive Officer Tidjane Thiam, who sought to bolster returns by focusing on the home market of Switzerland and expanding in Asian wealth management.
The US ranks forth largests for offshore wealth behind Switzerland, Hong Kong and Singapore, and is likely to hold about $1 trillion for non-US residents by 2023, said BCG.
Credit Suisse’s international wealth management business has focused on Latin America, Europe, the Middle East and Africa and was led until recently by Iqbal Khan, who moved to rival UBS Group. He was replaced by Philipp Wehle.