Exclusive outtakes from industry leaders
from Blogs Dashboard:
It’s simpler, more elegant . . . or just smaller.
“It’s an awkward position you’re in when you’re dealing with high net worth individuals and families because even if you have a pretty nice lifestyle at home you go on a trip and visit three or four clients and you come home at the end of the day and say, ‘Wow, how do I suffer through this five bedroom house and four bathrooms, and woe is me,’” BNY Mellon Wealth Management Managing Director of Family Wealth Services Thomas Rogerson told the Reuters Global Wealth Management Summit in Boston.
“I think that advisors that work with high net worth families very often have to struggle with that issue,” he said.
Rogerson is a funny case. He, himself, is heir to a fortune. His great grandfather was president of Boston Safe Deposit and Trust, a Massachusetts state-chartered bank taken over by Mellon, and started the Boston Foundation and Rogerson Communities philanthropic organizations. But, the money is essentially gone.
It is a little known fact that private bank Wegelin, Switzerland’s oldest bank is also active in the bars and restaurants business.
In its ‘Nonolet’ bars – a play on the Latin saying pecunia non olet (money doesn’t stink) – in St. Gallen and in Geneva, hedge fund managers and other financial professionals rub shoulders with other locals in the early evening over sparkling wine or champagne and snacks.
from Blogs Dashboard:
English-style horseback riding lessons? Fine. Summers split between five different country houses? Also fine.
But, how about enforced wealth education for the next generation? As in, teaching the kids how different types of investments actually work and how to enjoy the family fortune without instantly frittering it away? Now that smacks of pretension, especially for the kids, who are used to spending the 'rents riches without having to think too hard about the dirty green stuff itself.
The days of luxury VIP lounges are gone for many private bankers, as the crisis forces them to travel economy to save money.
Thrift has become the new mantra for private banks and, like with many other industry segments already, getting out of the office is allowed only if there are clients to meet.
Those who tend to avoid posh restaurants in Geneva’s expensive Rue du Rhone district and famed private banks because they believe they are not rich enough may be given a second chance at century-old wealth manager Julius Baer.
The Swiss private bank, which has made its name thanks to the services it offers to the ultra-rich, believe its powerful high-end brand may be keeping potential clients away.
Even for an American who’s not wealthy, Geneva has a reputation as a global centre for wealth management – the place the world’s rich come to stash their money and (they hope) make it grow.
But you don’t necessarily expect it to be so aggressive — after all, the rich tend to be demure when it comes to their banking.
A year after the implosion of Lehman Brothers, private banking leaders will gather in Geneva, Boston, Tokyo and Singapore on October 5
– 7 to share their views about the future of wealth management across the globe.The industry is at a crossroad. After the Madoff scandal and the collapse of bank secrecy in Switzerland and other major offshore banking centres many players have to rethink their banking model and work hard to regain their clients’ trust.
Even the rich aren’t as well-off as they were a year ago but that’s not stopping the wealth management industry from focusing on what the future of private banking will look like after the economic downturn has passed. Click below to view my latest story:
It’s a different kind of restructuring business these days, with politicians picking up the phone to try to put their two cents in too, Moelis & Co.’s Thane Carlston said during the Reuters Restructuring Summit.
“I don’t think there have ever been more calls placed on behalf of companies by governors, senators and congressman. And it does have an impact and it’s not just in the auto industry.”