Philipp Hildebrand
Philipp Hildebrand | |
|---|---|
| Born | July 19, 1963 Switzerland |
| Occupation | Financial executive |
| Years active | 1994–present |
| Known for | Chairman of the Swiss National Bank, Vice Chairman at BlackRock |
Philipp Michael Hildebrand (born 19 July 1963) is a Swiss financial executive who has held the position of vice chairman at BlackRock since 2012.[1][2]
Before joining BlackRock, Hildebrand was the Chairman of the Governing Board at the Swiss National Bank (SNB). His roles also included serving as Governor at the International Monetary Fund (IMF), a Director at the Bank for International Settlements (BIS), and membership on the Financial Stability Board (FSB), where he was appointed Vice Chairman by G20 leaders in November 2011.[3]
Early life and education
Hildebrand pursued his studies at the University of Toronto, Oxford University's Lincoln College, and the Graduate Institute of International Studies in Geneva. During his academic years, he took part in the Annual Meetings of the World Economic Forum held in Davos, engaging with prominent global policymakers and banking leaders.[2]
Private sector
His professional journey began in 1994 at the World Economic Forum. He later held positions at hedge fund Moore Capital Management in both New York and London. Following this, Hildebrand managed hedge fund activities at Union Bancaire Privée in Geneva as well as at Vontobel in Zurich.[2]
SNB
When Hildebrand joined the SNB in 2003, he was reportedly its youngest policymaker to date.
Prior to his departure from the SNB, he was a board member of the Bank for International Settlements based in Basel and served as vice-chairman of the Financial Stability Board. From 2008 onward, he also participated as a member of the Group of Thirty.
Controversy around the 2009–2010 exchange rate interventions
Hildebrand encountered criticism related to the SNB’s foreign exchange interventions conducted between March 2009 and June 2010. During this period, the SNB amassed foreign currency reserves exceeding 200 billion Swiss francs (CHF). As the Swiss franc strengthened, these interventions resulted in losses amounting to 26.5 billion CHF in 2010 and an additional 11.7 billion CHF during the first half of 2011. The SNB justified these actions as essential after conventional monetary policy instruments had been exhausted. Nonetheless, some international experts described these efforts as a “costly failure.”
Calls for Hildebrand’s resignation came from groups such as the Swiss People's Party and Die Weltwoche, while other political leaders defended him by underscoring the importance of maintaining SNB’s autonomy. The leading Swiss business publication Bilanz critiqued his leadership, pointing to his limited experience and suggesting that his decisions were influenced more by public opinion than by strategic considerations.
Pegging of the Swiss Franc to the Euro since 6 September 2011
Hildebrand is widely recognized as a principal advocate behind the SNB’s decision on 6 September 2011 to fix the Swiss Franc’s exchange rate against the Euro, setting an upper limit of 1.20 francs per euro. This policy was implemented after the euro neared parity with the franc earlier that August. Although initially met with skepticism from some analysts, this currency peg has since been regarded as an effective measure to ensure exchange rate stability.
2011 Foreign Exchange Trading Controversy and Resignation
In August 2011, Kashya Hildebrand, wife of Philipp Hildebrand, earned a profit of CHF 60,000 (approximately $64,400) from a foreign exchange transaction. Philipp Hildebrand promptly disclosed this trade to the Swiss National Bank (SNB) and took measures to prevent any further dealings with Bank Sarasin. Kashya defended the transaction by highlighting her independent expertise in finance, describing the trade as "almost ridiculously cheap." By January 2012, Philipp Hildebrand rejected allegations of insider trading, resisted calls for his resignation, and labeled the media scrutiny as a "smear campaign."
He contended that political adversaries were undermining Swiss banking secrecy laws and national interests. Although he acknowledged the error of not canceling the trade— which gained from an SNB market intervention two days later—he insisted that his actions complied with existing regulations. The profit figure was later updated to CHF 75,000. The whistleblower who disclosed the information was subsequently dismissed and subjected to a criminal probe under Swiss banking secrecy legislation.
Kashya, who operates an art gallery in Zurich and has prior experience in currency trading, executed two additional transactions with a combined principal amount of $2 million; however, only the August trade attracted scrutiny due to its timing. Philipp Hildebrand donated all profits from these trades to Swiss charitable organizations and affirmed that SNB policies were consistent with European standards, despite some media skepticism. Reports indicated that the whistleblower had shared details with Christoph Blocher, vice president of the Swiss People's Party (SVP), who spearheaded demands for Hildebrand's resignation.
Die Zeit minimized the severity of the misconduct, emphasizing that the evidence was illicitly obtained and suggesting that resignation was necessary to uphold the SNB’s reputation. On 9 January 2012, Hildebrand stepped down, asserting that "Credibility is a central banker's most valuable asset" and emphasizing the need to concentrate on institutional responsibilities. He also relinquished his roles at the Bank for International Settlements and the International Monetary Fund. Hildebrand released email correspondence demonstrating his awareness of the trade shortly after it occurred but conceded that he failed to annul it immediately.
Following his departure, vice chairman Thomas Jordan assumed interim leadership of the SNB. On 7 March 2012, a KPMG audit concluded that no regulatory violations had been committed by SNB governing board members concerning financial transactions.
Career After SNB
In 2012, Hildebrand served as a senior visiting fellow at Oxford University’s Blavatnik School of Government. That same year, he joined BlackRock as vice chairman, overseeing activities at the BlackRock Investment Institute (BII).
In 2020, the Swiss government put forward Hildebrand as its nominee for Secretary-General of the Organisation for Economic Co-operation and Development (OECD) for a five-year term. However, by February 2021, he withdrew from consideration due to a lack of sufficient backing from OECD member nations.
On May 30, 2022, Hildebrand was elected President of the Zürcher Kunstgesellschaft, officially assuming office on July 1, 2022.
Additional Roles
- Member of the International Advisory Board at Blavatnik School of Government, University of Oxford
- Trustee on the Board of British Museum
- Member of the International Leadership Council at University of Toronto
- Served on the Board of Governors for the International Monetary Fund (IMF) from 2010 to 2012
Recognition
- 2011 – Honored as "Central Bank Governor of the Year 2012" by The Banker
Personal life
Hildebrand secured the Swiss national swimming championship titles in both 1983 and 1984. He was married to Kashya Mahmood-Hildebrand until 2013. Up until 2022, his partner was Margarita Louis-Dreyfus, a Russian-born Swiss billionaire and chairwoman of Louis Dreyfus Group. The couple has twin daughters who were born in 2016. In April 2024, Philipp wed Kimberley Julius.