Martin Ebner Admits That 'Mistakes' Contributed To Liquidity Crisis

by Philip Morton, Investors Offshore.com

06 August 2002

Swiss shareholder champion, Martin Ebner has spoken out for the first time since it was revealed that a liquidity crisis has forced him to sell control of part of his BZ Group.

The BZ Holding Group announced last week that it would be selling all registered shares in its four listed investment funds to the Zurich Cantonal Bank. This has come as a shock to many, as Mr Ebner is seen as something of a financial guru in Switzerland, and has been credited with almost single-handedly popularising share investment with the country's normally cautious retail investors in the 1990s.

Speaking on Swiss television at the weekend, Mr Ebner explained that although his hand had been forced by the current stock market slump, flaws in the Group's business strategy had also contributed to the current crisis:

'The mistake we made was in having a portfolio that was not diversified enough,' he admitted, although he insisted that the cornerstone of the BZ Group - BZ Bank - is 'absolutely solid'.

Reporting on Mr Ebner's business troubles, the Wall Street Journal on Monday revealed that eight banks have allowed the Swiss group some breathing space on its loans, agreeing to extend payments by around one year.

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