FirstFT: Swiss rivals court Credit Suisse bankers and clients

With Credit Suisse’s future under UBS still in question, its Swiss rivals are capitalising on the turmoil to poach clients and bankers who saw hundreds of millions of francs in bonuses erased by the government-orchestrated takeover.

Julius Baer, Pictet, Lombard Odier, EFG and LGT are among the wealth managers swooping in to offer job stability and attractive sign-on packages to disgruntled bankers, people familiar with the conversations told the Financial Times.

“This is a highly competitive environment,” said one senior executive at a top-five Swiss bank which is negotiating with individuals at Credit Suisse. “All UBS has to offer is five years of insecurity.”

Many Credit Suisse employees anticipate swingeing job cuts as UBS integrates its defunct rival. A board member at another rival said he knew of an entire Credit Suisse team of up to 15 people looking for an exit.

Beyond bankers forced into the job market, the fallout from the takeover has led some investors to question the future of additional tier 1 bonds, the class of risky bank debt that Swiss regulators wrote down as part of Credit Suisse’s rescue deal.

Greg Peters, co-chief investment officer of PGIM fixed income, said it “forever impairs the ability to issue AT1s” which now face “continued risk premium repricing”, while Stephen Ehrenberg, a portfolio manager for Barings’ investment-grade fixed income group, warned that smaller banks would be limited by higher costs, which could well lead to a segmented market.

Here’s what else I’m keeping tabs on today:

• UK Budget: Chancellor Jeremy Hunt takes questions from MPs on the Treasury Committee over his spring Budget.

• Economic data: GfK publishes its consumer climate study for Germany and France has consumer confidence data for this month.

What did you think of today’s FirstFT? Let us know at firstft@ft.com. Thanks for reading.

Five more top stories

1. EXCLUSIVE: JPMorgan chief Jamie Dimon will be deposed in the Jeffrey Epstein lawsuits over his bank’s decision to retain the late sex offender as a client, said people familiar with the matter. The sworn deposition is due to take place behind closed doors in May.

2. Benjamin Netanyahu’s reforms are triggering backlash in the US from some of Israel’s most ardent supporters there. Here’s why a politically diverse group of American Jews that has been a core part of Israel’s security strategy now feels shaken.

• The FT View: In the battle for Israel’s soul, a withdrawal and not just a pause on judicial reforms should be the start, writes the FT editorial board.

• Opinion: Israel’s divisions are distracting it from external crises that threaten to create a perfect storm, writes former US ambassador to Israel Martin Indyk.

3. The UK government is “strikingly unprepared” for the effects of global warming, leaving vital sectors including agriculture vulnerable even if emissions are cut, its independent climate advisers have warned. Here are the failures identified by the Climate Change Committee.

4. Tech giants have been cutting roles overseeing ethical issues surrounding AI, leading to concerns about the safety of the new technology as it becomes widely adopted across consumer products. Read more about the moves at Microsoft, Meta and Google.

• More Big Tech: After months of delay, Apple launched a “buy now, pay later” service in the US yesterday, challenging incumbents including Klarna and Affirm.

5. Public satisfaction with the NHS has plummeted to a 40-year low at 29 per cent, the worst level since the British Social Attitudes Survey first started recording public views of the taxpayer-funded health service. Dissatisfaction is also at an all-time high, doubling since 2020.

The Big Read

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• Crypto crossroads: The time has come for the banking industry to make tough choices on digital assets, writes Brooke Masters.

• Northern Ireland: One of the problems the Windsor deal was supposed to fix — months of political paralysis in the region — remains as intractable as ever.

Chart of the day

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Take a break from the news

Twice married, and best known via party pictures in the Spanish tabloids, Marta Ortega Pérez had been dismissed frequently by the chauvinistic media as being a showjumping socialite. But no one at Inditex and Zara, co-founded by her father, was ruffled when she took over as non-executive chair last year. Read HTSI’s exclusive interview with her on succession, sustainability and sales.

Additional contributions by Amanda Chu and David Hindley