Credit Suisse's former head of Swiss private banking is moving to Geneva-based rival Lombard Odier. Will Serge Fehr unleash a «Collardi effect» there?

Serge Fehr is joining the extended circle of Lombard Odier partners in August, it was confirmed by the Geneva-based private bank at the request of finews.com.

Replaced Last Summer

According to reports, the Frenchman will become responsible for the Swiss home market at Lombard Odier, with Andreas Arni, the head of its Zurich branch, reporting to Fehr. The financial blog «Inside Paradeplatz» first reported on the appointment.

That Lombard Odier refrained from its customary pre-announcement of a designated partner is an indication of the nervousness accompanying the personnel change, and all the more remarkable since Fehr's departure from Credit Suisse has been known for some time. Last summer, finews.com reported the veteran, who had been head of Swiss private banking since 2012, would be replaced.

Inevitable Job Cuts

That caused internal consternation at Credit Suisse, with his subordinates fearing staff cuts because he had always vehemently defended his team. With the forced takeover of Credit Suisse by UBS, such measures now seem inevitable, with UBS having promised its shareholders to generate around 8 billion francs per year in cost savings by the end of 2027.

This has significantly increased centripetal forces among employees, with the industry now hearing about unsolicited applications to competitors. «Credit Suisse bankers are looking for a plan B,» is how one Zurich headhunter describes the current jostling. In such an environment, Fehr's arrival at competitor Lombard Odier will have a signal effect, and not go unnoticed by Credit Suisse management.

Recruiting From Competitors

It is just possible there might be a «Collardi effect» to Fehr's appointment. When former CEO Boris Collardi left private bank Julius Baer in 2017 to become a partner at Pictet, he brought several Baer bankers on his coattails to its Geneva-based competitor.

According to observers, Geneva-based private bankers at Credit Suisse may be tempted to follow their former boss to Lombard Odier who in the past recruited client advisors and executives from Credit Suisse who were willing to change their stripes. In the current situation, such departures would probably be a thorn in the side not only of CS but also of UBS.