In the wake of this weeks news that the former branch manager of Falcon Bank has been charged with 16 counts related to the Malaysian fund 1MDB, the former head of now shuttered BSI Bank in Singapore has come under the spotlight. 

A wide-ranging article by «Bloomberg» titled «The Charismatic Banker Who Led Singapore's BSI Into the Abyss» goes into deep detail on the career highs and lows and lifestyle of Hanspeter Brunner.

Brunner managed to convince more than 100 staff from RBS Coutts in Hong Kong and Singapore to place their faith in him and join then little-known BSI Bank, which at that time was owned by Italian insurer Generali.

In short order, Brunner and his team managed to build a $10 billion private wealth management unit in Asia.

Control Lapses and Gross Misconduct 

Seven years later, BSI met an ignominious end: the bank was ordered to charges brought in Singapore by the regulator who at the time said «BSI Bank is the worst case of control lapses and gross misconduct that we have seen in the Singapore financial sector». 

The charges brought against Jens Sturzenegger, the former branch manager of Falcon Private Bank in Singapore made him the fifth person – and first Swiss banker — to be charged in the extensive and ongoing probe of the scandal-plagued Malaysian state investment fund. 

Three out of the other four, Yak Yew Chee, Yeo Jaiwei and Yvonne Seah Yew Foong, were all former BSI Bank employees in Singapore.

Unprecedented Move

The recent trial of Yeo shed light on operations at BSI, when the former head of wealth management services Kevin Swampillai testified that the bank's management was a «lame duck committee», with bankers allowed free rein in dealing with clients with a lack of central control.

The article also points out that Brunner himself may face charges after the Swiss regulator began proceedings against him and he, Sriram and Swampillai were referred to Singapore prosecutors by the MAS. 

Sandy Baggett, a Singapore-based lawyer at Freshfields Bruckhaus Deringer, and former deputy director for financial securities offenses at the Singapore attorney general’s office is quoted in the article as saying, «It is unprecedented for MAS to name individuals publicly that they have referred for investigation, that tells you something about the level of evidence they must have.»