ZURICH — On Tuesday (July 23), Julius Baer announced the hiring of Goldman Sachs partner Stefan Bollinger as its new CEO. The Swiss private bank aims to recover from the Signa scandal, which resulted in significant financial losses and tarnished its reputation. The search for a new CEO began after Philipp Rickenbacher was dismissed in February following the bank's substantial loss on loans to the failed property firm led by Austrian magnate Rene Benko. Bollinger, currently co-head of private wealth management for Europe, the Middle East, and Africa at Goldman Sachs in London, will assume his new role at Julius Baer by February 1, 2025.

Romeo Lacher, chairman of Julius Baer, praised Bollinger's impressive record in global banking and wealth management, highlighting his role in expanding Goldman Sachs' presence across Asia, Europe, the Middle East, and Africa. Under Bollinger's leadership over the past five years, the private wealth management division's assets in these regions more than doubled. Lacher noted Bollinger's "comprehensive understanding of risk," crucial in light of the Signa incident.

Bollinger, a 50-year-old Swiss national, began his career at Zuercher Kantonalbank and has spent 14 years as a partner at Goldman Sachs. He also has experience working at J.P. Morgan. "I am excited to be joining Julius Baer," Bollinger commented. Bank Vontobel analyst Andreas Venditti endorsed the appointment, stating that Bollinger is well-qualified to lead Julius Baer and address any lingering issues related to Signa.

As the new CEO, Bollinger will guide Julius Baer through a challenging period. The bank, established in 1890, has been embroiled in several controversies, including a 586 million Swiss franc (S$884.7 million) write-down related to Signa. This financial setback led to Rickenbacher's departure and contributed to an eight per cent drop in the bank's share price over the past year.

Earlier this year, Julius Baer reportedly engaged in takeover discussions with EFG International. However, Swiss regulatory concerns halted the potential 15 billion Swiss franc deal, which would have seen EFG's CEO Giorgio Pradelli potentially leading the combined entity.