Salomon Brothers has found a niche above a grocer and a video shop. Taxi drivers have been known to lose their way trying to find the Citicorp offices. Shearson Lehman is temporarily housed in the cramped offices of its parent, American Express.
It's a far cry from the silent, spacious corridors, punctuated by imposing wooden doors, at Credit Suisse.
Yet from the backyard comes the competition which the Swiss cannot ignore. The foreign banks have refused to be squeezed out of the Swiss capital market.
For 10 years the big three Swiss banks--Credit Suisse, Swiss Bank Corporation and Union Bank of Switzerland--have been losing ground in the lucrative Swiss franc bond market, often to foreign institutions, and particularly to the American commercial banks. Market share has fallen from 90% in 1976 to 60% at the end of 1985. Now a further wave of newcomers--the US investment houses--are setting up shop.
Shearson Lehman became operational last month. Morgan Stanley's Zurich office will be open early in the new year, dry rot permitting. Salomon Brothers has participated in 10 deals since commencing its investment banking operation last January.
