Credit Suisse has frozen plans for a wealth management hub in Miami to attract billions in new money from the rich in Latin America, two people familiar with the matter said.
The early-stage discussions have cooled because legal considerations and investment costs outweighed expected returns, the people said, asking not to be identified because the talks are private. A bank spokeswoman declined to comment.
Switzerland’s second biggest lender had been considering a return to wealth management on U.S. soil after a four-year absence to boost growth in private banking, Bloomberg reported in September. Talks had focused on plans to attract $15 billion of assets under management, mostly from wealthy Latin Americans.
The discussions had included employing up to 30 people including control and support staff in Florida, the people had said, asking not to be identified discussing confidential information.
When an unusual recruiting deal between Credit Suisse and Wells Fargo went awry, years of broker frustration, severe attrition and litigation followed. Also at stake: Up to $245 million in back pay.
Credit Suisse agreed to transfer its U.S. brokerage to Wells Fargo in 2015 after a fine related to client tax evasion, but continued to serve a group of ultra-high-net-worth clients out of New York.
The U.S. is one of the biggest offshore wealth centers in the world, with Miami especially favored by Latin American clients because of its close geographic and cultural links.
