Bank in Winterthur
Encyclopedia
The Bank in Winterthur is one of the original predecessor banks to the Union Bank of Switzerland
and ultimately UBS. Established in 1862, the bank merged with Toggenburger Bank
in 1912 to form the Union Bank of Switzerland
.
, the famous Hotel Baur au Lac in Zurich and many other companies. The bank capitalized on its location at an important Swiss railroad junction and its large warehousing facilities allowed the bank to take advantage of the dramatic rise in cotton prices caused by the American Civil War
. The Bank in Winterthur saw its share capital double by the end of the war.
In the mid-1880s, The Bank in Winterthur experienced financial difficulties. The bank's involvement in the financing of the ill-fated private Schweizerische Nationalbahn (Swiss National Railway
) resulted in the loss of one-fifth of the bank's capital reserves in 1887.
The Union Bank of Switzerland
was formed in 1912 when the Bank in Winterthur merged with the Toggenburger Bank. The combined bank had total assets of 202 million CHF and a total shareholders' equity of 46 million CHF. This combination was part of a larger trend toward concentration in the banking sector in Switzerland at the time. Through the next few years, the bank would begin to shift its operations to Zurich from its historical headquarters in the cities of Winterthur
and St. Gallen, Switzerland. In 1917, UBS completed construction of a new headquarters in Zurich on Bahnhofstrasse, considered to be the Wall Street
of Switzerland.
The new bank used different names in its three core languages: German, French and English. In German, the bank was Schweizerische Bankgesellschaft and was known by the initials SBG. The original English name for the combined bank was the Swiss Banking Association, but it was later changed to Union Bank of Switzerland in 1921 to mirror the French form of the name: Union de Banques Suisses. The bank's logo, introduced in 1966, would later reflect both the German SBG and the English and French name UBS.
Union Bank of Switzerland
Union Bank of Switzerland was a large integrated financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become UBS to form what was then the largest bank in Europe and the second...
and ultimately UBS. Established in 1862, the bank merged with Toggenburger Bank
Toggenburger Bank
Toggenburger Bank is one of the original predecessor banks to the Union Bank of Switzerland and ultimately UBS. Established in 1863, the bank merged with the Bank in Winterthur in 1912 to form the Union Bank of Switzerland.-History:...
in 1912 to form the Union Bank of Switzerland
Union Bank of Switzerland
Union Bank of Switzerland was a large integrated financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become UBS to form what was then the largest bank in Europe and the second...
.
History
The Bank in Winterthur was founded in 1862 in Winterthur, Switzerland with an initial share capital of 5 million CHF. The bank, which was established by a group of local businessmen, operated primarily as a commercial bank, providing financing for a range of companies and projects. The bank would be involved in funding the Swiss Locomotive and Machine WorksSwiss Locomotive and Machine Works
Swiss Locomotive and Machine Works were a railway equipment manufacturer based in Winterthur in Switzerland...
, the famous Hotel Baur au Lac in Zurich and many other companies. The bank capitalized on its location at an important Swiss railroad junction and its large warehousing facilities allowed the bank to take advantage of the dramatic rise in cotton prices caused by the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
. The Bank in Winterthur saw its share capital double by the end of the war.
In the mid-1880s, The Bank in Winterthur experienced financial difficulties. The bank's involvement in the financing of the ill-fated private Schweizerische Nationalbahn (Swiss National Railway
Swiss National Railway
The Swiss National Railway was a railway company in Switzerland.The Swiss National Railway was created in 1875 from the merger of the two companies, the Winterthur–Zofingen Railway and the Zofingen–Singen–Kreuzlingen Railway...
) resulted in the loss of one-fifth of the bank's capital reserves in 1887.
The Union Bank of Switzerland
Union Bank of Switzerland
Union Bank of Switzerland was a large integrated financial services company located in Switzerland. The bank, which at the time was the second largest bank in Switzerland, merged with Swiss Bank Corporation in 1998, to become UBS to form what was then the largest bank in Europe and the second...
was formed in 1912 when the Bank in Winterthur merged with the Toggenburger Bank. The combined bank had total assets of 202 million CHF and a total shareholders' equity of 46 million CHF. This combination was part of a larger trend toward concentration in the banking sector in Switzerland at the time. Through the next few years, the bank would begin to shift its operations to Zurich from its historical headquarters in the cities of Winterthur
Winterthur
Winterthur is a city in the canton of Zurich in northern Switzerland. It has the country's sixth largest population with an estimate of more than 100,000 people. In the local dialect and by its inhabitants, it is usually abbreviated to Winti...
and St. Gallen, Switzerland. In 1917, UBS completed construction of a new headquarters in Zurich on Bahnhofstrasse, considered to be the Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
of Switzerland.
The new bank used different names in its three core languages: German, French and English. In German, the bank was Schweizerische Bankgesellschaft and was known by the initials SBG. The original English name for the combined bank was the Swiss Banking Association, but it was later changed to Union Bank of Switzerland in 1921 to mirror the French form of the name: Union de Banques Suisses. The bank's logo, introduced in 1966, would later reflect both the German SBG and the English and French name UBS.