Raiffeisen takes over greater part of Wegelin & Co. –
USA risks and responsibilities retained by the previous Managing Partners

St. Gallen, 27 January 2012 − As a consequence of the increasingly threatening situation surrounding Wegelin & Co. Private Bankers in the US tax dispute, the bank's Managing Partners have taken a radical step – a substantial majority of clients and staff will be transferred to Notenstein Private Bank Ltd, which will become a 100% subsidiary of Raiffeisen for an undisclosed sum. This transaction enables Raiffeisen to substantially strengthen its position in wealth management. Wegelin & Co. Private Bankers will remain in existence to finalise the closure of all remaining US client relationships and to continue the negotiations with the US justice authorities.

In the current dispute between Switzerland and the USA, Wegelin & Co., Switzerland's oldest bank, is confronted with circumstances that make radical and permanent steps indispensable to protect the interests of its clients and employees. As per 27 January 2012, Wegelin & Co. will transfer a substantial majority of its clients and staff to Notenstein Private Bank Ltd. With the transfer, Wegelin & Co.'s Asset Management division will be merged with Wegelin Fund Management Ltd and reformed as 1741 Asset Management Ltd, a 100% subsidiary of Notenstein Private Bank Ltd.

The Managing Partners with unlimited liability will remain with Wegelin & Co. to follow through the legal negotiations with the US justice authorities and finalise the closure of all remaining US client relationships. "As Managing Partners with unlimited liability, we will fulfil our responsibilities and stand by Wegelin & Co.'s obligations. We are determined to see the legal negotiations through to the end. At the same time, it is our duty to guarantee our clients and staff the greatest possible security. Our Managing Partners are unanimous on that" confirms Wegelin & Co.'s senior Managing Partner, Dr Konrad Hummler.


Notenstein Private Bank Ltd with proven team

Dr Pierin Vincenz, CEO of the Raiffeisen Group has been appointed Chairman of the Board of Notenstein Private Bank; the CEO is Dr Adrian Künzi. "Our most urgent task is to retain the trust of the clients and employees" says Künzi. "At the same time, the change of ownership gives us an opportunity to reorganise and create a new structure for modern wealth management under the current regulatory requirements."


Acquisition by Raiffeisen the most sustainable solution

With the complete takeover of Notenstein Private Bank by Raiffeisen, the position of the clients and external business partners has been secured in all respects. At the same time, Raiffeisen can implement its long-desired expansion in private banking. "The takeover of Notenstein Private Bank represents a quantum leap for Raiffeisen that enables us to substantially strengthen our position in wealth management. The clients are accustomed to outstanding services – we will do our utmost to win their continued trust. That we can take on this new challenge with a well-established, experienced team gives me great confidence for the future" confirms Pierin Vincenz.

Konrad Hummler concludes: "I never could have imagined that we, as owners of Switzerland's oldest bank, would ever have considered selling. The extraordinarily difficult situation and threat to the bank brought about by the legal dispute with the US has forced me and my longtime associate Otto Bruderer to take this extremely painful step together with the other Managing Partners. With the acquisition through Raiffeisen, we have been able to find a sustainable solution for our clients and staff with a trustworthy and competent partner, despite the enormous pressure. That is a great relief for all the Managing Partners."