The future of Credit Suisse’s arts partnerships hangs in the balance after UBS announced an emergency takeover of the Swiss private bank on Sunday.
Shares of Credit Suisse fell earlier this month following the collapse of Silicon Valley Bank and two other US lenders due to recent interest rate hikes by the Federal Reserve.
The Swiss government later armed UBS to buy its former rival for $3.25 billion and assume $5 billion of its debt. Full details of the rushed deal – called a “gun wedding” by some financial analysts – have not yet been disclosed. Thousands of jobs at Credit Suisse would be at risk.
Like many large banks, Credit Suisse has strong ties to the art world. José Olympio da Veiga Pereira, former managing director of Credit Suisse in Brazil, is an avid art collector and president of the Fundação Bienal de São Paulo. The bank also holds an important collection of modern and contemporary Swiss art and financially supports seven art institutions in Europe, including six in Switzerland and the National Gallery in London.
In recent years, these institutions have come under scrutiny for their relationship with the bank following revelations from the Guardian which has linked many Credit Suisse clients to serious crimes, including human trafficking and torture.
UBS says it’s too early to discuss all the ramifications of the takeover on the art world. A spokesperson for the bank said: “We recognize the important support that Credit Suisse has given to arts organizations in Switzerland and abroad. It’s too early to tell what the additional program of partnerships and arts support will look like as we are still operating as two separate entities.” Credit Suisse declined to comment.
However, six of the seven partner institutions of Credit Suisse, contacted by The arts journal said they would welcome UBS as a sponsor. THE Zurich Art Museumthat Credit Suisse has sponsored for more than 30 years, “assumes that the new owner [UBS] will take over and fulfill the contractual obligations that Credit Suisse has entered into by sponsoring the Kunsthaus,” says a spokesperson for the museum.
Corporate sponsorship accounts for “less than 10%” of total revenue at Kunsthaus Zurich, of which Credit Suisse accounts for around a third, or less than 3% of its revenue, according to the spokesperson. This means that the Kunsthaus is “capable of filling any short-term shortfall”. Nevertheless, he adds, “in the medium term, a replacement will be needed if UBS does not continue the commitment of Credit Suisse”.
The Kunstmuseum Basel is also open to the prospect of UBS stepping in as a sponsor: “We have worked very well with Credit Suisse in the past and are also financially supported by other banks. For this reason, we do not see no reason to question the cooperation with the banks, which is important to us. This also applies to UBS”, says a spokesperson. Since 2012, Credit Suisse has supported one exhibition per year at the Kunstmuseum Basel. This contract expires next year.
The National Gallery in London, the only museum outside Switzerland to maintain an official partnership with Credit Suisse, remains silent: “We are speaking to our colleagues at Credit Suisse about the current situation and have nothing further to add at this time. “. However, like the Kunstmuseum Basel, the gallery’s partnership is to be renewed next year.
Indeed, the collapse of Credit Suisse could provide these museums with a much-needed pretext to sever ties with a controversial partner.
Kunsthaus Zurich’s contract with Credit Suisse is also up for renewal. “We have been in talks about the future of the collaboration for several months,” the museum’s spokesperson said, adding, “As a member of ICOM [International Council of Museums]the Kunsthaus Zurich respects the ethical principles set out by the professional organization.
