The Geneva-based private bank is facing an equity blockage because of money laundering proceedings in Italy. It's just one challenge the owners of Banque Cramer are facing.

Massimo Esposito, chairman and majority owner of Banque Cramer, has a lot to worry about these days. Not only is his bank being challenged operationally, as can be seen from its first-half results, but the Geneva-based bank is confronted with legal and management issues still awaiting a solution.

Italian newspapers and a recent «Gotham City» (behind paywall) blog post reported on proceedings in Italy that have already had unpleasant consequences for Cramer.

Measure Confirmed by Court

Italian authorities accused the bank of helping clients circumvent the automatic exchange of information (AEOI) and subsequently laundering funds, with allegations dating back to the years 2010 and 2018.

An Italian court already blocked over 20 million Swiss francs ($22.4 billion) of Cramer's equity. According to the blog post, a court of cassation reconfirmed the measure. The bank declined to comment on questions posed by finews.com.

Strategically Restricted

The blocked equity doesn't immediately threaten the institution, and regulatory capital requirements are still in place. However, the measure restricts the strategic scope of the bank, likely making it difficult for it to use its shares as a means of payment for a takeover.

That's no small handicap. Banque Cramer had previously excelled as a consolidator in Swiss private banking, acquiring Zurich-based Valartis Bank in 2014 and Lugano-based asset manager A.M.&C. Finance in 2018.

No Interim Boss

Building on this is difficult because the bank's leadership is currently hanging in the balance. CEO Erich Pfister is leaving the company and is currently on garden leave, along with COO Marc Balma.

No interim CEO has been named so far, at least publicly. It can be assumed that Cramer will be steered by the remaining management team and that Esposito will once again take a more active role at the bank.

Gustav Stenbolt on Board

He's likely to be supported by Gustav Stenbolt. Since the sale of Valartis Bank to Cramer, Stenbolt has held a stake in Norinvest, Esposito's investment company, which owns 100 percent of Banque Cramer.

Stenbolt also sits on the board of Norinvest, as does Marco Netzer, the former chairman of the Swiss AHV compensation fund, now Compenswiss.