The Swiss private bank Julius Bär is under investigation by the Swiss Financial Market Supervisory Authority (FINMA) for inadequate risk control structures that contributed to the bank’s involvement with bankrupt real estate mogul René Benko. The investigation was triggered by concerns that the business and control functions at Julius Bär were not sufficiently separated. The FINMA is examining the reporting lines of the bankers responsible for structuring loans for private clients like Benko, which lead to the same teams that manage credit risk. Both departments are ultimately supervised by the Chief Financial Officer, Evie Kostakis, while the risk team would normally report to the Chief Risk Officer. The bank acknowledges that no individual can be held solely responsible for the situation, as the loans to Benko went through three different risk committees. The FINMA is also monitoring Swiss banks’ engagements with the Signa Group and has already taken action in some cases.

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Information	Details
Geography	Europe
Countries	🇨🇭
Sentiment	neutral
Relevance Score	1
People	Evie Kostakis, René Benko
Companies	Eidgenössische Finanzmarktaufsicht, Julius Bär, Finma, Signa-Gruppe
Currencies	None
Securities	None