Geneva Hit by Closure of Private Bank

Geneva has to wave goodbye to yet another foreign banking institute. The Israel-based company is shuttering its office with 25 employees in the city.

Bank Hapoalim, Israel’s biggest bank, is paring its private-banking business in Switzerland, «AWP» newswire reported today. One of the measures taken is the closure of the Geneva-based branch.

The bank is in talks with the 25 employees affected by the closure. Hapoalim didn’t say whether all 25 face being released.

Zurich Branch to Stay

Hapoalim will retain its Zurich branch, which is bigger than the Geneva office. The Zurich office is responsible for business in Israel and the European Union.

By contrast, the bank will reduce the business with Latin American and Russian customers «significantly».

Strategic Asset

Bank Hapoalim Switzerland recently was rumored to be up for sale, speculation that the Israeli company subsequently denied. Hapoalim said the Swiss unit was a strategic asset and not for sale.

With the closure in Geneva, the local banking industry is losing yet another private-banking office. Goldman Sachs previously this year closed up in the city and Morgan Stanley also decided to leave, passing on its business to J. Safra Sarasin.