Swiss private bank Wegelin & Co has signed a lease on 2,000 sq metres in the centre of Lausanne where it will be possible to house some 100 employees. The bank is currently present in Geneva and Lausanne with a combined staff of 40 in the two offices. It will move into the new premises with just 15 staff in early 2009 whilst maintaining its current office.

The rationale behind this? "2008 is the year of the private banks," says Adrian Kunzi the manager responsible for Geneva and Lausanne as quoted in Saturday's edition of Le Temps. The business model is for unlimited partner liability (the traditional Swiss private banking model) which is something that gives clients a basis for trust. With staff holding some 80 per cent of the bank and the Wegelin family 20 per cent the main stakeholders have their interests aligned according to the Bank.

The bank also plans other areas of expansion in areas such as sustainable development.

Wegelin & Co is the oldest Swiss bank and was founded in St Gallen in 1741. Since the early 1990s it has experienced significant growth by focusing on the domestic market in Switzerland. Other offices may follow in other Swiss towns in the area such as Fribourg or Neuchatel.

It seems that there is no shortage of institutions, domestic or otherwise, which are ready to cover for any lack of faith in the larger Swiss banks that may result from their current woes.