Swiss banking regulator Finma has blocked the sale of Banque Pasche – at least for the time being. For the prospective buyer, Banque Havilland, it was the second rejection at the hands of Finma as research by finews.ch revealed.
France's Crédit Mutuel-CIC wants to get rid of Banque Pasche, the Geneva-based bank burdened by problems. It found a buyer, Banque Havilland of Luxembourg. Only one hurdle was left to take – the approval by the Swiss regulator.
The contract between Crédit Mutuel-CIC and Banque Havilland stipulated that Finma had to accept the transaction by the end of November – well, it didn't.
Transaction in Difficult Circumstances
Why the regulator refused to wave the transaction through, nobody wants to say – Banque Havilland, Banque Pasche, Groupe Mutuel-CIC, Finma. But the regulator seems to have taken more time to decide.
And that is understandable: Banque Pasche is accused of tax fraud and money laundering in France.
Furthermore, Finma rejected Banque Havilland as a buyer once before as finews.ch can reveal. The bank from Luxembourg wanted to assume the client assets of Bank Hottinger, when the private bank collapsed, but Finma rejected the deal, according to an investment banker who was involved in the transaction. The 1.2 billion francs went to Banque Heritage instead.
Built From Scratch
Havilland is owned by the Rowland family from the U.K., seven members of which are active in leading positions at the institute. Jean-François Willems is chief executive officer. The family built the bank from the remains of Kaupting, the Icelandic institute that folded in 2009.
The Rowlands planned to build the bank with the help of acquisitions. For instance, Havilland in August agreed to buy Banca Popolare Luxembourg.
Still, the bank at the end of 2014 had a mere 1.3 billion euros under management, the majority of which probably belonged to the founding family in addition to some assets from Kaupting. With the money, the bank earned a profit of 2.8 million euros.
The institute remained true to its expansionary strategy. In the summer, it opened a branch in Moscow, adding to the network of Luxembourg, London, Monaco, Vaduz and Nassau.
Had Finma waved through the acquisition of Pasche, Havilland now would have had another two: Geneva and Zurich. But as it stands today, Banque Pasche still belongs to Crédit Mutuel-CIC.
