Although a relative minnow in its overall capitalization, the privately owned Saxo Bank has blazed a trail through the foreign exchange industry since its establishment in 1992. One of the early pioneers of internet trading, Saxo has attracted a widespread client base big enough to propel it to 23rd position in the 2008 EuromoneyFX poll.
Saxo has always dared to be different, perhaps evidenced most recently by its decision to sponsor a professional cycling team. Because of cycling's long association with doping, many felt that the move could only result in negative publicity for the bank. Saxo saw it differently, convinced that it was buying into the sport at a time when it had already reached rock-bottom.
Its decision looks so far to have been fully vindicated. Team CSC-Saxo Bank dominated the 2008 edition of the Tour de France, winning the overall individual and team awards. Its success generated a huge amount of publicity for the bank. So it must have been particularly galling for Saxo to see the wheels metaphorically fall off its business for other reasons barely a month after the race finished.
In early September, the bank suspended Charles-Henri Sabet, the chairman of its Swiss subsidiary and global head of trading. The move was prompted after an investigation into his activities by the Swiss Federal Banking Commission. Neither the bank nor the Commission will comment on what the investigation is about. At the time of writing, Sabet had not responded to email requests for information sent to his Saxo address.
Sabet, who won the Monte Carlo World Championship of Backgammon in 1985, was the founder and chief executive of Geneva-based Synthesis Bank. This was bought by Saxo in September 2007 as part of its strategic decision to make a push into the wealth market. Following the takeover of Synthesis, Sabet assumed responsibility for trading at Saxo and became one of its senior executive directors.
Industry sources say that Saxo was swift to advise its counterparties of the investigation into Sabet, which is not believed to be related to foreign exchange and which it says will not have any impact on its business.
First published on the weeklyFiX website:
Exclusive: Saxo suspends executive pending regulator's investigation
September 04, 2008